DBS Group analysts said Indonesian equity valuations should recover if the
rupiah stabilizes, noting FX is the key driver of market sentiment. They flagged
that concerns over a narrowing trade surplus, elevated oil prices and
Indonesia’s new export plans have pressured the rupiah and equities. DBS said
lower oil, easing geopolitical tensions and policy support from Bank Indonesia
could help steady the rupiah. The bank cut its end‑2026 Jakarta Composite Index
target to 8,000 from 9,500, citing uncertainty from a weaker rupiah.
