Indonesian Non-Cyclical Consumer Stocks Underperform Amid Economic Pressures

Weak Consumer Demand Impacts Sector Performance

The non-cyclical consumer sector index has recorded the weakest performance among all sectoral indices on the Indonesia Stock Exchange, with only an 8.74% year-to-date increase to 793.27 as of December 17, 2025. This underperformance is particularly notable when compared to other sectoral indices that have achieved double or even triple-digit growth during the same period.

Factors Contributing to Underperformance

Equity Analyst Hari Rachmansyah from PT Indo Premier Sekuritas (IPOT) identified several key factors contributing to the sector's lackluster performance. First, there has been a significant weakening in consumer purchasing power, which has directly impacted the sales and revenue of companies in this sector. Second, companies have faced margin erosion due to rising costs of raw materials and logistics, further pressuring their financial performance. Lastly, there has been a noticeable rotation of investor funds away from non-cyclical consumer stocks to more aggressive sectors such as commodities, energy, and second-tier stocks.

Market Implications

The underperformance of the non-cyclical consumer sector has broader implications for the market. It reflects changing investor preferences and risk appetite, with investors seemingly favoring sectors that are perceived to offer higher growth potential in the current economic environment. For companies within the non-cyclical consumer sector, this trend suggests the need to adapt their strategies to maintain investor interest and support their stock performance.