Indonesian stocks are edging back toward bull-market territory, and one of the rally’s clearest beneficiaries is an AU data center operator whose earnings are compounding regardless of what the rupiah does next.
The Jakarta Composite Index (JCI) has climbed 20% from its early-June low. That rebound follows a rough start to 2026, with the index still down 25% year to date, making it the worst-performing major benchmark globally.
The Rally’s Foundations
Bank Indonesia raised rates by a combined 100 basis points in May and June, MSCI postponed a planned review of the country’s market status until November, and S&P Global Ratings affirmed the sovereign credit rating.
President Prabowo Subianto’s decision to scale back a costly free-meals program has also eased fears of fiscal slippage. Indonesia’s economy grew 5.29% year over year in the second quarter, beating the 5.14% median estimate in a Bloomberg survey.
That backdrop is macro relief, not necessarily a structural bull case.
DCI Indonesia is where the two stories meet.
Where DCI Indonesia Fits
DCI Indonesia is the country’s largest listed data center operator has profited from the AI infrastructure boom and its first-half results show why investors keep buying it through the broader market’s turmoil. Net profit rose 18.7% year over year to Rp732.53 billion ($44 million), while revenue climbed 33.2% to Rp1.77 trillion, driven almost entirely by colocation services, which made up 94.5% of the total.
Just 2.1% of that revenue came from affiliated parties, meaning the growth reflects genuine third-party demand rather than internal deals.
The company has also started parking part of its balance sheet in the Patriot Bond, a debt instrument issued by Danantara, Indonesia’s sovereign wealth fund, carrying a 2% coupon. That holding now accounts for 6.3% of total assets, well above DCI’s historical allocation to marketable securities.
Ai Building in Asia
The demand DCI is capturing lines up with a broader regional shift. Southeast Asia’s AI buildout has increasingly become a physical infrastructure story rather than a software one, according to United Overseas Bank executives, and memory chip demand tied to AI has already driven record profit growth at Samsung elsewhere in the region.
Goldman Sachs, meanwhile, has flagged AI investment as a driver reshaping Asian markets, though it has notably not extended that bullishness to the rupiah.
That gap, a regional AI infrastructure boom that Goldman doesn’t yet credit to Indonesia’s currency, is worth watching. DCI’s own share price is still down roughly 18.6% over the past year even after this year’s bounce, meaning its earnings have been growing faster than its stock, the opposite of what tends to happen when a rally is running ahead of fundamentals.
Whether that combination, real profit growth outrunning a cautious share price, is enough to pull more of Jakarta’s market with it is the open question for the rest of 2026.