JAKARTA — Indonesia’s conglomerate stocks have witnessed remarkable price appreciation throughout 2025. This significant rally naturally raises a pivotal question for investors: what are the prospects for sectoral rotation moving into the next year?
According to Sukarno Alatas, Senior Equity Research at Kiwoom Sekuritas, the majority of these prominent conglomerate shares have already experienced substantial gains since the beginning of 2025. Alatas noted earlier this week that while many exhibit high price-to-earnings (P/E) ratios, some still maintain relatively low price-to-book (P/B) values. This dynamic presents potential opportunities for value investing, though their short-term attractiveness might be limited after such a strong performance.
Looking ahead to 2026, Sukarno Alatas identifies several sectors poised for significant growth. Among these, the infrastructure and transportation sectors stand out, propelled by ongoing government projects and robust logistics demand. Furthermore, the consumer and retail sectors are expected to receive a substantial boost from resilient domestic consumption. The energy and basic materials sectors, highly sensitive to commodity price fluctuations, are also highlighted as suitable for momentum trading strategies.
Kiwoom Sekuritas’ analysis further suggests that the property sector remains undervalued, benefiting from a low-interest-rate environment and a pipeline of new projects. Finally, the telecommunications and digital sectors are deemed particularly appealing for 2026, offering long-term growth potential through effective content monetization strategies.
For investors formulating their strategies for 2026, Sukarno recommends a disciplined approach: holding onto stocks that have already demonstrated strong upward trajectories, unless a market correction occurs. He advises focusing on “value or momentum within favored sectors,” driven by key catalysts such as sustained economic recovery, stable domestic consumption, continued low interest rates, and global commodity price trends.
As per data from the Indonesia Stock Exchange (BEI), several conglomerate stocks have indeed emerged as top market leaders since the start of the year. These include DSSA, part of the Sinarmas Group; DCII, affiliated with Otto Toto Sugiri and Anthony Salim; BRPT, owned by Prajogo Pangestu; and BRMS and BUMI, with affiliations spanning the Bakrie and Salim Groups, respectively.
Summary
Indonesian conglomerate stocks experienced substantial price appreciation throughout 2025, prompting investors to consider sectoral rotation for 2026. Sukarno Alatas from Kiwoom Sekuritas notes that many of these stocks have achieved significant gains, with some still presenting value through low price-to-book ratios despite high price-to-earnings figures. Their short-term attractiveness may be limited following such a strong performance.
For 2026, Alatas highlights infrastructure, transportation, consumer, retail, energy, basic materials, property, telecommunications, and digital sectors as poised for growth. Investors are advised to focus on value or momentum within these favored sectors, guided by factors like sustained economic recovery, stable domestic consumption, low interest rates, and global commodity prices. Notable top-performing conglomerate stocks include DSSA, DCII, BRPT, BRMS, and BUMI.