Consumer Sector Recovery to Drive Indonesian Issuer Performance in 2026

Gradual Consumption Recovery Expected

The consumer sector in Indonesia is poised for recovery in 2026, driven by improving domestic consumption trends. According to Baruna Arkasatyo, an analyst at CGS International, Indonesian domestic consumption is likely to recover gradually in 2026 after weakening in recent quarters. The analyst notes that while returning to pre-pandemic consumption growth levels above 5% won't be easy, it remains a realistic target for 2026.

Key Factors Driving Recovery

1. Improving Domestic Demand: The gradual recovery in domestic consumption is expected to boost sales volumes for consumer sector issuers.
2. Pre-pandemic Growth Targets: Achieving consumption growth above 5% is considered achievable by 2026.
3. Sector Performance: Consumer sector companies are likely to benefit from the anticipated recovery in consumption patterns.

Analyst Insights

Baruna Arkasatyo from CGS International highlights that the recovery will be gradual, emphasizing that while challenging, returning to pre-pandemic consumption levels is realistic. The analysis suggests that companies in the consumer sector should be well-positioned to capitalize on the improving consumption trends.