“Introduction to Doing Business in Indonesia 2026” offers insights into Indonesia’s economy, foreign investment, trade conditions, manufacturing, and business environment, aiding foreign enterprises and investors.

New Publication on Indonesia’s Business Environment

The latest release, Introduction to Doing Business in Indonesia 2026, by Dezan Shira & Associates, is now available for download at the Asia Briefing Publication Store. This comprehensive guide offers valuable insights for foreign investors and enterprises interested in Indonesia’s evolving market landscape.

Economic Overview and Investment Trends

Indonesia’s economy grew steadily at around 4.9–5.0% through 2025, driven more by domestic investment than external demand. Foreign direct investment remained significant, totaling approximately IDR 900.9 trillion (US$53–55 billion). The shift toward more cautious, long-term capital commitments highlights a maturing investment environment, supported by a stronger internal economic base and increased domestic participation.

Trade Dynamics and Sector Performance

Trade exposure to external policies became evident in 2025, as U.S. tariffs temporarily exceeded 30% on certain exports, impacting manufacturing activity. The manufacturing sector experienced volatility, with the Purchasing Managers’ Index dipping into contraction early in the year but later rebounding. While growth remains sensitive to external factors, Indonesia’s economic resilience continues to strengthen.

Comprehensive Business Guide

Introduction to Doing Business in Indonesia 2026 offers a detailed overview aimed at foreign investors seeking to navigate Indonesia’s business climate. It covers key sectors, investment strategies, legal considerations, and upcoming economic opportunities, serving as a vital resource for strategic decision-making.

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Read the original article : An Introduction to Doing Business in Indonesia 2026 – New Publication from Dezan Shira & Associates

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In a conversation with ET Now, Dipan Mehta, Director, Elixir Equities shared a constructive but selective outlook across sectors, expressing optimism on NBFCs and pharma, caution on metals, and a clear avoid stance on certain largecaps.

On the lending space, Mehta believes the clean-up in microfinance and MSME unsecured portfolios has strengthened the NBFC segment. “I think that for investors who want to buy lenders, NBFC is a great segment… a lot of NBFCs now have cleaned up their books… whatever the NPA they had are well behind them.”

He emphasised a preference for diversified lenders rather than niche players. “Our preference is for NBFCs which are doing multi-product… not just housing or automobile loans or microfinance or gold loan.” He cited Bajaj Finance, Chola and L&T Finance as preferred names, while disclosing investments in them.

Turning to solar equipment manufacturers, Mehta acknowledged that the bullish call has not played out immediately. “We have been very positive on all solar equipment manufacturing companies… that call is not proving right so far.” However, he maintained that long-term investors could benefit. “If you have a longer-term view… this is a nice sustainable compounding industry and can deliver good returns.” On the recently imposed 126% customs duty, he said, “This… will not impact India’s solar equipment industry to any major extent… Waaree included,” adding that valuations have turned attractive, even as he disclosed existing investments in the space.

On the underperformance of Reliance Industries, Mehta offered a structural explanation. “I have a different view and that is that it is slowly going to become a holding company.” He suggested that investors may be uncomfortable with the prospect of IPOs for Jio and retail without a clear vertical split. “We would have preferred a vertical split… given free shares to all the shareholders.” Until there is clarity on restructuring, he believes the stock could remain subdued, though he reiterated that it remains a great company.

In real estate, Mehta advised patience and selectivity, favouring larger developers with rental income streams. “I would prefer the larger ones, especially those which have got some annuity assets as well.” He referred to companies like Prestige and DLF as examples and added that investors should broadly focus on players with rental assets, given the supply of new listings and valuation adjustments underway.
On tobacco counters, particularly ITC Limited, his stance was unequivocal. “Yes, we have a view and it is an avoid. It is not an FMCG stock. It is a tobacco stock and it is valued accordingly.” He said growth visibility remains limited. “I do not see ITC growing at double digit type of growth rates in the foreseeable future.” Instead, his focus is on small and midcap companies with unique business models and more reasonable valuations after the recent correction.Discussing the GLP-1 opportunity in pharma, Mehta acknowledged its potential but warned about competition. “You are right, it is a good opportunity. But just too many players over there.” Even so, he remains constructive on the broader sector. “On the whole investors should be overweight pharma.” He noted that CDMO companies have seen sharp corrections and should be on investor watchlists for a potential turnaround.

On new-age digital firms such as Eternal, he said investor patience appears to be wearing thin. “Investors are losing patience… when they will turn to profitability.” However, he added, “We remain very positive on Eternal… we have a longer-term view,” signalling continued conviction despite volatility.

Finally, on metals, Mehta struck a cautious tone after a prolonged rally. “It is a cyclical industry and now it has been a great outperformer.” While he would remain invested, he is not keen on fresh entries at current levels. “At some point the cycle certainly will turn… right now I do not see the outperformance continuing.”

Overall, Mehta’s approach reflects a preference for diversified financials, an overweight stance on pharma, selective exposure in real estate and solar, caution in metals, and a clear avoidance of slow-growth largecaps — all anchored in a long-term investment perspective.

Oracle Corporation’s stock rebounded 1.20% to close at $147.89 on February 25, 2026, snapping a recent pullback as analysts highlighted the company’s undervaluation following a sharp sell-off, with Oppenheimer upgrading the shares to Outperform and setting a $185 price target amid ongoing optimism about Oracle Cloud Infrastructure’s role in AI workloads.

As of February 25, 2026, Oracle (NYSE: ORCL) traded in a session range of $147.34 to $153.28 with volume of approximately 26.5 million shares. The shares have declined about 25% year-to-date in 2026 from earlier peaks near $200+, reflecting investor concerns over slowing cloud revenue growth, elevated capital expenditures, and debt levels tied to aggressive AI data center buildout. Market capitalization stands around $410-420 billion.

The February 25 gain followed Oppenheimer analyst Brian Schwartz’s upgrade from Perform to Outperform, citing an attractive valuation after the recent decline and viewing easing risks around OpenAI partnerships and continued hyperscaler cloud spending as long-term catalysts. Schwartz’s $185 target implies about 25% upside from recent levels. Other firms, including Bernstein SocGen Group, trimmed targets earlier in February but maintained Outperform ratings, underscoring mixed but generally constructive sentiment.

The upgrade arrives ahead of Oracle’s fiscal third-quarter 2026 earnings, expected in early March 2026 (likely March 9-10). Analysts project EPS around $1.36-$1.56 and revenue near $16 billion, reflecting continued growth in cloud services despite earlier Q2 results that fell slightly short of expectations. In fiscal Q2 2026 (ended November 30, 2025), reported December 10, 2025, Oracle delivered total revenue of $16.1 billion, up 14% year-over-year (13% in constant currency), with cloud revenue (IaaS plus SaaS) surging 34% to $8.0 billion. Remaining performance obligations reached a record $523 billion, up 438% in USD, driven by long-term commitments from major clients including Meta Platforms and NVIDIA.

Oracle’s AI push has centered on Oracle Cloud Infrastructure (OCI), positioned as a premier platform for high-performance computing and generative AI workloads. The company has aggressively expanded data center capacity, with projected fiscal 2026 capital expenditures soaring to $50 billion—a $15 billion increase from September 2025 guidance. Partnerships with NVIDIA and others underscore OCI’s growing traction in AI training and inference, though some observers note risks from heavy spending, negative free cash flow exceeding $10 billion in recent periods, and off-balance-sheet lease obligations approaching $248 billion.

Despite near-term pressures, analysts view Oracle’s trajectory positively. The company’s enterprise software dominance, combined with cloud acceleration and AI tailwinds, supports projections for fiscal 2026 revenue growth in the mid-teens and continued margin expansion. Consensus among covering firms leans toward Buy, with average 12-month price targets around $180-$200, implying substantial upside from current levels.

Oracle’s strategic focus includes embedding AI across products, with leadership emphasizing agility in response to rapid AI technology changes. Recent contracts, such as an $88 million OCI deal with the U.S. Department of the Air Force, reinforce its positioning in secure, mission-critical workloads. The company also benefits from its database and applications heritage, providing a stable foundation amid the shift to cloud and AI services.

Challenges persist, including competitive intensity from AWS, Microsoft Azure, and Google Cloud, as well as concerns over capital intensity and debt management. Some reports highlight potential margin erosion if revenue growth slows relative to spending, though Oracle’s RPO backlog offers strong visibility into future revenue.

The upcoming Q3 report will provide critical insights into cloud revenue trends, AI adoption, capex execution, and any refinements to full-year guidance. Positive commentary on OCI momentum and AI pipeline could sustain the rebound; signs of prolonged spending pressures might renew caution.

Oracle Corporation, a leader in enterprise software and cloud services, navigates a pivotal phase with its AI and cloud investments positioning it for long-term growth. Recent sell-off concerns appear to have created an entry point for some analysts, who see the stock as undervalued relative to its potential in the AI infrastructure boom. As fiscal 2026 progresses, Oracle’s ability to convert massive backlog and spending into profitable expansion will determine whether the current rebound marks a turning point or a temporary pause.