Indonesia's beaten-down stock market is drawing renewed interest from global investors as the rally in AI-linked stocks begins to lose momentum, prompting portfolio managers to rotate into undervalued markets, according to Reuters.
The shift comes after months of heavy selling in Indonesian equities, which have been among Asia's worst-performing major markets this year. The Jakarta benchmark index is still down about 28% in 2026, weighed by concerns over fiscal discipline and uncertainty surrounding an ongoing review by index provider MSCI. However, the benchmark rebounded more than 10% in July, outperforming several technology-heavy Asian markets that recently came under pressure, as per a Reuters report.
