Warakirri sees Indonesia equities as undervalued after foreign selling hits USD 3 billion

• Warakirri analysis flagged Indonesia equities as increasingly attractive despite foreign selling of about USD 3 billion since October 2024.
• Market de-rating sharpened valuations, with the local P/E a little above 11x, dividend yield above 5.7%, Telkom about 8%.
• MSCI freeze raised downgrade risk; IDX warned a Frontier demotion could trigger about USD 45 billion in additional foreign outflows.
• Officials moved to address governance concerns, including a 15% minimum free float, 1% disclosure threshold, tighter ownership rules.
• Risk premium lifted 100 bps to 16%; Indonesia allocation held near 6% as macro metrics stayed stable around 5% growth.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Warakirri Asset Management Ltd. published the original content used to generate this news brief on September 17, 2026, and is solely responsible for the information contained therein.