Investment Optimism Improves as Indonesia Enters 'New Normal'

High volatility during the first half of 2026 is predicted to bring investment into a new normal pattern. According to ASEAN Economist at UOB, Enrico Tanuwidjaja, the second half of 2026 has entered a new normal, where oil prices will stabilise with minimal fluctuations, exchange rate stability will begin to occur, and public optimism will return alongside consumption and investment behaviour. “The war has been going on for four months, so we are now entering the new normal period. Since the crisis, all the steps taken have yielded results. Bond inflows have entered. Bank Indonesia has raised interest rates. Fiscal policy has been reallocated correctly. Now, what we need to look at next is protection policy,” Enrico said during the UOB Media Literacy event “Navigating Market Volatility: Building Portfolio Resilience with ORI030” held on Thursday (16/7/2026) at Teras Ramayana, Hotel Indonesia Kempinski, Jakarta. “With the BI rate increase, it will make investing in safer instruments more attractive. Moreover, Indonesia’s economy grew by 5.61%, which is still good because it is above the world average growth rate. Southeast Asia remains an oasis of higher economic growth,” he stated. Head of Deposit & Wealth Management at UOB Indonesia, Emiliya Soesanto, added that the valuation of the Indonesian stock market is currently very cheap. The valuation is very attractive, especially since the government is working hard to maintain the stability of the Rupiah. “Looking at what the regulators have done, it has been well-coordinated and the response has been fast, such as when BI raised the BI Rate to 5.75% and bond yields stabilised. In this second half of 2026, we see investment opportunities opening wide, especially in the retail bond market with a 7% yield, namely ORI030 with a 6-year tenor as a choice. ORI030 is very suitable for conservative investor profiles. This is a good opportunity to add to our portfolio because the yield is good and security is guaranteed,” said Emiliya. Emiliya stressed the importance of implementing a Risk-First Approach through three main principles: be prepared, diversify, and be strategic. Investors do not need to wait for ideal market conditions because volatility is part of the investment cycle. Furthermore, building a diversified portfolio is considered more important than trying to time the market, while fixed income instruments remain relevant as a strategic component in maintaining portfolio resilience. ORI030 is offered by the government through distribution partners, including UOB Indonesia, until 30 July 2026. Through this Media Literacy Circle activity, UOB hopes the public will better understand the importance of building a balanced investment portfolio according to their risk profile, supported by an understanding of economic and market conditions.