Global Risks Ease, Mirae Asset Securities Urges Investors to Remain Mindful of Domestic Challenges
PT Mirae Asset Sekuritas Indonesia believes global financial markets have begun to stabilize as geopolitical tensions in the Middle East ease. Nevertheless, investors should continue to monitor challenges stemming from global monetary policy as well as domestic economic conditions in Indonesia, which are expected to continue influencing market direction in the near term. The outlook was shared during Mirae Asset Securities Media Day, themed "Fear vs Fundamentals: Where Is Indonesia Really Headed?", which explored the latest market developments, sector specific investment opportunities, and portfolio diversification strategies. Rully Arya Wisnubroto, Head of Research & Chief Economist at PT Mirae Asset Sekuritas Indonesia, said that although geopolitical risks have eased, markets remain overshadowed by expectations of higher interest rates in the United States for longer. The Federal Funds Rate (FFR) currently stands at 3.75% and is projected to increase by 25 basis points in both September and December, potentially reaching 4.25% by year end. Meanwhile, the global economic growth forecast for 2026 has been revised down to 3.1% from 3.3%, while Indonesia's economic growth is expected to remain relatively resilient at around 5.0%, slightly below the previous projection of 5.1%. "The easing of geopolitical risks has provided positive sentiment for financial markets. However, expectations of further Federal Reserve rate hikes through the end of the year suggest that global monetary conditions will likely remain tight, keeping market volatility elevated," said Rully. He added that investors are also closely monitoring several domestic factors, including rupiah stability, fiscal conditions, and growing concerns over a potential twin deficit following the weakening of both the current account and financial account balances in the first quarter of 2026. "Looking ahead, Indonesia's market recovery will largely depend on investor confidence in domestic policymaking. Investors should therefore remain focused on fundamentals and adopt a more selective investment approach," he added. Meanwhile, Andreas Kristo Saragih, Senior Research Analyst at PT Mirae Asset Sekuritas Indonesia, highlighted the poultry sector as one of the industries worth watching amid current market conditions. Indonesia's chicken consumption remains relatively low at approximately 8.6 kilograms per capita, significantly below Malaysia (32.9 kilograms) and Vietnam (16.7 kilograms), indicating substantial room for long term growth.
PT Mirae Asset Sekuritas Indonesia believes global financial markets have begun to stabilize as geopolitical tensions in the Middle East ease. Nevertheless, investors should continue to monitor challenges stemming from global monetary policy as well as domestic economic conditions in Indonesia, which are expected to continue influencing market direction in the near term.
The outlook was shared during Mirae Asset Securities Media Day, themed "Fear vs Fundamentals: Where Is Indonesia Really Headed?", which explored the latest market developments, sector-specific investment opportunities, and portfolio diversification strategies.
Rully Arya Wisnubroto, Head of Research & Chief Economist at PT Mirae Asset Sekuritas Indonesia, said that although geopolitical risks have eased, markets remain overshadowed by expectations of higher interest rates in the United States for longer. The Federal Funds Rate (FFR) currently stands at 3.75% and is projected to increase by 25 basis points in both September and December, potentially reaching 4.25% by year-end.
Meanwhile, the global economic growth forecast for 2026 has been revised down to 3.1% from 3.3%, while Indonesia's economic growth is expected to remain relatively resilient at around 5.0%, slightly below the previous projection of 5.1%.
"The easing of geopolitical risks has provided positive sentiment for financial markets. However, expectations of further Federal Reserve rate hikes through the end of the year suggest that global monetary conditions will likely remain tight, keeping market volatility elevated,"
said Rully.
He added that investors are also closely monitoring several domestic factors, including rupiah stability, fiscal conditions, and growing concerns over a potential twin deficit following the weakening of both the current account and financial account balances in the first quarter of 2026.
"Looking ahead, Indonesia's market recovery will largely depend on investor confidence in domestic policymaking. Investors should therefore remain focused on fundamentals and adopt a more selective investment approach,"
he added.
Meanwhile, Andreas Kristo Saragih, Senior Research Analyst at PT Mirae Asset Sekuritas Indonesia, highlighted the poultry sector as one of the industries worth watching amid current market conditions. Indonesia's chicken consumption remains relatively low at approximately 8.6 kilograms per capita, significantly below Malaysia (32.9 kilograms) and Vietnam (16.7 kilograms), indicating substantial room for long-term growth.
