11 December 2020
Under the 2021 Macroeconomic assumptions, the government is targeting an economic growth of 4.5% - 5.5%. If this recovery can be achieved, Indonesia will return to its long-term economic growth.
Meanwhile, NHKSI research sets a base case 2021 JCI target of 6,800; which implies a forward P/E of 18.1x. Our top picks for 2021 include: Banking (BBNI, BMRI); Consumer Goods (MYOR, KLBF); Telecommunication (TOWR, TLKM,EXCL); and Property (CTRA, PWON).
11 November 2020
Indonesia officially entered into a recession zone after posting negative economic growth for 2 consecutive quarters. However, the JCI drew strength from US election where Joe Biden is projected to be the winner.
This is reinforced by the chance that GOP will retain a majority seat in the senate, which would block any policy plans that deemed unfavorable to business. Other than thatwe are trying to identify companies
which performed well in 3Q20.
15 October 2020
Bank Indonesia (BI) has set the BI Seven Days Reverse Repo Rate (BI 7-DRRR) at 4% for the October 2020 period, or has held the benchmark interest rate for 4 consecutive months.
8 October 2020
The JCI fell sharply by -7.03% in September, ending a long market rally which started at the end of March. This was accompanied by a massive amount of foreign net sell which recorded at IDR 15.5 Trillion. Meanwhile, the Omnibus Law on Job Creation was passed in early October which will impact the economy and stock market. Furthermore, as Indonesia set to enter its first recession in 20 years, we revisit the 1998 monetary crisis to get a glimpse on how investors can prepare for a recession.
1 October 2020
Due to low interest in PBS003, the government only sold IDR6.4 trillion Government Sharia Bond (sukuk) on Tuesday (29/09) or under the indicative target of IDR10 trillion.