Indonesian Infrastructure Sector Outlook for 2026

Current Performance and Future Prospects

The Indonesian infrastructure sector showed exceptional growth in 2025, with the IDX Infrastructure index surging 71.51% year-to-date as of December 19, 2025. This remarkable performance significantly outpaced the broader Jakarta Composite Index, which rose 21.61% during the same period. The strong growth was primarily driven by the telecommunications subsector, particularly companies providing infrastructure for internet services.

Key Drivers and Market Dynamics

According to Fath Aliansyah Budiman, Head of Investment Specialist at Maybank Sekuritas, the growth in the IDX Infrastructure index was largely driven by infrastructure providers for internet services. The increasing demand for digital infrastructure has been a significant factor in this growth. As Indonesia continues to develop its digital economy, companies in the telecommunications subsector are well-positioned to benefit from this trend.

Outlook for 2026

Looking ahead to 2026, analysts expect the performance of infrastructure stocks to be more moderate compared to the exceptional growth seen in 2025. While the sector is likely to continue growing, the pace is expected to slow down. Investors should focus on companies with strong fundamentals and those that are well-positioned to capitalize on the ongoing digital transformation in Indonesia.