Low-Cost, High-Cashflow Indonesian Stocks Worth Considering

Hidden Opportunities in Indonesia’s Equity Market.

The Indonesia Market Report: Hidden Opportunities identifies undervalued “Ugly Duckling” stocks with strong growth potential. Despite its modest $0.76-trillion market cap in 2024—far below the U.S. market’s $38.98 trillion—Indonesia presents significant investment opportunities. Private equity fundraising ($4.55 billion) also lags behind the U.S. ($654 billion) and EU ($123.69 billion), highlighting untapped potential. The 2025 Nicholas Levenstein dan Rekan Indonesian Equity Conference will discuss both the challenges and bargains in Indonesia’s market. Download our 2023 report on https://levenstein.net/nldr-2023-indonesia-report.

Valuation Metrics: Identifying Growth Potential

The KOMPAS100 Index, representing Indonesia’s most liquid stocks, has an average P/E ratio of 16.714 and P/B ratio of 1.936—significantly lower than the S&P 500’s 23.671 and 4.336, respectively. Unlike the tech- and healthcare-heavy U.S. market, Indonesia’s is driven by finance, consumer goods, and infrastructure.
“Ugly Duckling” Stocks with Strong Fundamentals
Highlighted undervalued stocks include:

• LPLI (Property & media investments)
• PNIN (Insurance & financial services)
• APLN (Real estate development)
• MNCN (Media & broadcasting)
• ASRI (Real estate development)

If Star Pacific (LPLI) were listed in the U.S. alongside Howard Hughes Corporation (HHH), its valuation could be 44 times higher. Similarly, Media Nusantara Citra (MNCN) and Paninvest (PNIN) trade at a fraction of FOX Corp (FOXA) and MetLife, respectively. Agung Podomoro Land (APLN) and Alam Sutra Realty (ASRI) could be valued three times higher compared to Lennar Corp (LEN).

The “Indonesia Tariff”: Understanding Valuation Gaps

Indonesian stocks trade at a discount due to macroeconomic risks, investor perceptions, and operational inefficiencies. Addressing these factors could help companies unlock value and attract more investment.

Upcoming Conference: Unlocking Indonesia’s Potential

The 2025 Nicholas Levenstein dan Rekan Indonesian Equity Conference (May 12-13, Grand Hyatt, Nusa Dua, Bali) will delve deep into Indonesia’s undervalued equities, featuring discussions with business leaders, investors, and financial advisors. For details of the conference, please visit https://levenstein.net/nldrpe.

Conclusion: Capturing Indonesia’s Growth Potential

Indonesia’s market holds significant investment opportunities. Understanding the “Indonesia Tariff” and identifying undervalued stocks could yield substantial returns as these “Ugly Ducklings” evolve into market leaders.