Harian Express English, Jakarta – J.P. Morgan projects the Indonesia Stock Exchange (IDX) Composite index to reach 7,000 by the end of this year, while also noting that achieving 6 percent economic growth next year will require stronger stability and greater certainty, (4/9/2026)
Benny Kurniawan, Head of Indonesia Equity Research at J.P. Morgan Indonesia, stated during a media briefing on Thursday that publicly listed companies recorded 6 percent year-on-year earnings growth in the first half of this year. This occurred despite numerous global and domestic headwinds impacting the local stock market.
Corporate earnings growth for the upcoming year is also projected to reach 9 percent. This growth is expected to be driven by government spending and investment.
“Considering the state budget posture, we believe the economy will be quite stable. Although we expect [GDP] growth to come in slightly below the 6 percent figure by the end of the year, the J.P. Morgan team still expects the [IDX Composite index] to reach 7,000 by December,” ujar Benny Kurniawan (Head of Indonesia Equity Research at J.P. Morgan Indonesia) di Jakarta, Thursday.
Kurniawan expressed optimism regarding Indonesia’s capital market, highlighting that corporate earnings remained strong. This resilience was observed despite challenges in some segments due to rising input costs.
Government expenditure has boosted economic activity and created a trickle-down effect in several sectors. The consumer sector, for instance, reported double-digit growth levels in the first half of this year.
Despite the strong earnings performance, the IDX Composite Index has declined 23 percent to around 6,600 points so far this year. Kurniawan attributed this downturn largely to negative market sentiment.
