Monthly Market Summary January 2026

Indonesia’s economic growth shows positive momentum at the start of 2026, with 4Q25 GDP rising to 5.4% YoY and January inflation increasing to 3.5% due to seasonal factors. The PMI remains in expansion territory, and the 2025 trade surplus reached USD 60.8 billion. In the bond market, INDOGB yields moved higher and performance weakened in January, while Moody’s revised Indonesia’s outlook to Negative but maintained its Investment Grade rating. The equity market was pressured by MSCI‑related sentiment, driving the JCI down 3.67% MoM and triggering foreign outflows, although gold‑linked stocks strengthened. With valuations now more attractive, rising stimulus, and recovering earnings among large‑cap issuers, Indonesia’s market holds potential for double‑digit returns in 2026, particularly in industrial metals, consumer staples, and consumer discretionary sectors. 

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