Flooring Guide by Cinvex — JAKARTA — PT Mirae Asset Sekuritas Indonesia has identified several key stock recommendations as the domestic market navigates significant pressure throughout 2026. While the market faces headwinds, analysts point to the banking sector and select consumer goods issuers as prime opportunities for investors seeking long-term value.
According to Martha Christina, Head of Investment Information at Mirae Asset Sekuritas Indonesia, the Composite Stock Price Index (IHSG) closed at 6,371 on May 19, 2026, marking a 26.3% decline on a year-to-date (YtD) basis. This performance places the IHSG among the weakest-performing indices globally, as tracked by the Indonesia Stock Exchange’s IECMD ranking.
Market Pressure and Foreign Outflows
The market’s downward trend has been exacerbated by persistent foreign net selling since the start of the year. Cumulative net outflows reached Rp13.3 trillion in January, followed by Rp5.7 trillion in February, Rp10.5 trillion in March, Rp16.8 trillion in April, and an additional Rp4.9 trillion through mid-May 2026.
“Despite this, shares of major banks remain attractive additions to a portfolio, as their fundamental performance continues to show positive growth,” Martha noted on Wednesday (May 20, 2026).
The four largest banks—PT Bank Mandiri (Persero) Tbk. (BMRI), PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI), PT Bank Central Asia Tbk. (BBCA), and PT Bank Negara Indonesia (Persero) Tbk. (BBNI)—have all posted consistent annual net profit growth. BMRI leads with an 18.8% year-on-year growth during the first four months of 2026, while BBRI (13.7%), BBNI (5.2%), and BBCA (3.8%) also reported solid results for the first quarter of 2026.
Valuations and Strategic Picks
Martha highlights that the current valuations for these banking giants are historically compelling. The Price-to-Book Value (PBV) ratios have undergone significant corrections, nearing multi-year lows. Notably, BBCA’s valuation is approaching levels not seen since the 2008 financial crisis, despite the heavy pressure from foreign investors.
Beyond the banking sector, Mirae Asset has identified several stocks currently trading below market consensus, presenting potential upside for disciplined investors. These include PT Indosat Tbk. (ISAT), PT Cisarua Mountain Dairy Tbk. (CMRY), PT Japfa Comfeed Indonesia Tbk. (JPFA), PT Midi Utama Indonesia Tbk. (MIDI), PT Erajaya Swasembada Tbk. (ERAA), and PT Surya Citra Media Tbk. (SCMA).
To navigate this period of heightened volatility, Mirae Asset advises investors to prioritize portfolio diversification, increase allocations in defensive instruments like Money Market Mutual Funds (RDPU), and remain highly selective regarding companies with strong fundamentals. “Volatility is not just a risk; it is an opportunity for investors who remain disciplined and informed,” Martha added.
Shifting Landscapes and Regulatory Uncertainty
Martha also addressed the recent shift in foreign capital, which has moved from the banking sector toward commodities over the past one to two years. Global investors have favored commodity-related stocks due to the surge in global prices. However, the sector is now facing new uncertainties as the government considers implementing a single-gate export system for strategic commodities like coal and crude palm oil (CPO).
Through BPI Danantara, the government has established PT Danantara Sumberdaya Indonesia, which is intended to serve as a single platform for natural resource exports via state-owned enterprises (BUMN). Documentation for these exports is slated to transition to this entity starting in June 2026.
“The market is currently awaiting clarity on the government’s policy regarding this export agency,” Martha explained. While the move may be intended to bolster state revenue, the lack of detail remains a concern. She emphasized that for investors and business owners, legal and regulatory certainty is the most critical factor in driving investment into Indonesia. “For businesses, profitability can be managed as long as the rules are clear. Certainty is the number one priority.”
Disclaimer: This article is for informational purposes only and does not constitute a recommendation to buy or sell any securities. All investment decisions remain the responsibility of the reader. Bisnis.com is not liable for any gains or losses resulting from investment decisions made based on this information.
Summary
PT Mirae Asset Sekuritas Indonesia reports that the Composite Stock Price Index (IHSG) has experienced a significant year-to-date decline of 26.3% due to persistent foreign net outflows. Despite this volatility, analysts suggest that the banking sector, particularly major lenders like BBCA, BMRI, BBRI, and BBNI, remains attractive due to strong fundamental growth and historically low valuations. Investors are encouraged to maintain discipline and focus on companies with solid performance indicators while navigating current market pressures.
Beyond banking, Mirae Asset has identified potential value in select consumer goods and infrastructure stocks such as ISAT, CMRY, and JPFA. The firm also advises portfolio diversification and the use of defensive instruments like Money Market Mutual Funds to mitigate risks. Furthermore, market participants are currently awaiting regulatory clarity regarding the government’s new single-gate export system for strategic commodities, as policy certainty remains a primary concern for long-term investment stability.