Citigroup: Indonesian stock market prospects seem more optimistic

Citigroup Investment Research Analysts' report suggests that the outlook for the Indonesian stock market in 2026 appears more optimistic. They point out that structural challenges such as bottlenecks in foreign direct investment and exchange rate stability still exist. However, a combination of higher liquidity, a larger fiscal multiplier, and resilient domestic demand should provide a favorable environment for the Indonesian stock market. Higher liquidity and lower financing costs may support a bank profit recovery through stronger loan growth, margin expansion, and normalization of credit costs. These analysts suggest that increased government spending and social subsidy programs should also boost household consumption, benefiting consumer and retail stocks including Mayora Indah. Citigroup has set a target for the Jakarta Composite Index at 9,250 points in 2026.