Indonesian markets have been on the back foot this year, with concerns over equity derating and central bank independence hitting stock prices and the rupiah.

The macro picture, by contrast, still looks relatively "boring". Real growth has picked up a bit going into 2026 but remains well below the officially published pace; inflation is well-behaved, the external position is balanced and BI is maintaining positive real interest rates.

As a result we maintain our positions in IDR carry and local debt pending further review.