AI technology is driving global stock valuations higher, although Indonesia’s market has yet to catch up (09/12). Adrian Joezer, Head of Equity Research & Strategy Division at PT Mandiri Sekuritas, explained that ASEAN markets, including Indonesia, are not performing as strongly as markets outside the region.

The growth of AI in countries with strong AI ecosystems, such as chip production and hardware supply chains, has increased investor enthusiasm. “High enthusiasm also makes valuations increasingly expensive, due to very high growth expectations from investors,” Adrian said in Jakarta on Tuesday.

Indonesia’s AI Stock Valuations Still Low

In Indonesia, AI technology valuations remain relatively low. Adrian noted that the country’s modest growth projections have kept stock valuations in check.

“If there is a mismatch with projected growth, the potential for market corrections becomes larger,” he added.

Other ASEAN countries, such as the Philippines, Malaysia, and Thailand, also have low valuations. As a result, global investors now view the region as an undervalued market.

Potential Opportunities Amid Global AI Market Changes

Adrian highlighted that ASEAN markets could benefit from AI development because their market expectations are still low, leaving greater room for growth. “The market expectations are still at a low point, so the room for growth is greater,” he said.

PHOTO: MANDIRI SEKURITAS

This article was created with AI assistance.