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View all search resultsBasic materials, consumer stocks to lead Indonesian market next year
The Indonesian bourse recorded a 22.1 percent gain since the start of the year to rank third in performance among Southeast Asia’s equity markets, and outlooks by leading financial research firms point to continuing resilience in 2026.
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A trader monitors an electronic display showing movement on the Indonesia Stock Exchange (IDX) Composite index on April 8, 2025, in South Tangerang, Banten. (AFP/Bay Ismoyo)
T
he Indonesian Stock Exchange (IDX) capped a stellar 2025, with the benchmark IDX Composite index soaring to a record high of 8,710.7 on Dec. 8 before closing the year firmly at 8,646.9.
The index’s 22.1 percent gain since the start of the year cemented the Indonesian bourse as one of Southeast Asia’s top-performing equity markets, trailing only those of Vietnam and Singapore, where the respective benchmarks rose 39.2 percent and 22.9 percent year-to-date.
Analysts see basic materials and consumer goods shaping up as standout bets next year, buoyed by firm commodity prices and resilient domestic consumption.
In its Asia Pacific Equity Research report released on Dec. 2, United States investment bank J.P. Morgan assigned an “overweight” rating to materials, consumer staples and consumer discretionary stocks on the IDX heading into 2026, citing expectations of stronger government spending, improving domestic consumption and supportive commodity fundamentals.
Earnings in the basic materials sector, which includes chemicals, cement and metals, are projected to grow around 40 percent year-on-year, while profits in the consumer staples and consumer discretionary sectors are forecast to rise 15 percent and 14 percent, respectively, making them the main drivers of market growth next year.
Among large-cap stocks, J.P. Morgan named Bank Central Asia (BCA), Astra International, instant noodle producer Indofood CBP Sukses Makmur, GoTo Gojek Tokopedia and state-owned miner Aneka Tambang (Antam) as its top picks for 2026.
“Materials are supported by strong gold and copper prices. Gold refiners could potentially benefit from the recently announced gold export levy,” said the report, penned by executive director Henry Wibowo and other analysts.
