Market Oulook 2024: Investment Climate In Transition Period Remains Conducive

JAKARTA - PT Mandiri Investment Management (Mandiri Investasi) estimates that the investment climate in the second half of 2024 will remain conducive and has the potential to provide optimal yield opportunities for investors. This is due to the strong commitment of President Joko Widodo's administration during the transition period, in maintaining Indonesia's economic growth. These include maintaining a budget deficit that does not exceed 2.7 percent of GDP, and not issuing new SBN, so as not to increase the burden on the country.

Likewise, in the preparation of the 2025 RAPBN, the current government has consulted with the economic team of new presidential candidates, so that next year's state financial condition is estimated to be able to support a number of strategic programs of the new government. At the Mandiri Investment Market Outlook 2024 event, Deputy Minister of SOEs Kartika Wirjoatmodjo said the Ministry of SOEs has long-term programs to encourage economic transformation in Indonesia such as renewable energy and mining downstreaming. The Ministry of SOEs has prepared a long-term roadmap that provides direction for SOEs to be an engine for Indonesia's economic transformation in the next ten years which focuses on several key sectors such as the digital sector, green economy, infrastructure and social inclusion.

In addition, Kartika also said that in the next five years, apart from Mandiri, BRI, Telkom, and Pertamina, there will be other SOEs that can also become world top companies. For example, Pelindo Group, In Journey, and MIND ID. Companies with medium size will be big and it is hoped that one day they can do an IPO.

"We will focus on SOEs that have a good significant size, competence, and future outlook to be able to be brought to the market capital," Kartika said, quoted Thursday, July 18.

Furthermore, Tiko also said that the investment model in SOEs is not only through the capital market but also through private deals and together with INA, SOEs are building a private investment ecosystem with global strategic investors.

Likewise in the banking sector, Bank Mandiri has a commitment and responsibility in advancing and maintaining the continuity of the financial industry in the long term. Especially in the capital market sector, Aquarius Rudianto, Director of Network and Retail Banking Bank Mandiri sees public optimism in the outlook for stock markets and bonds in Indonesia. He believes that mutual fund products and fund management contracts can grow sustainably.

One of the indicators is that the number of mutual fund investors increased significantly to 11.9 million, about 60 percent of which are the younger generation. Therefore, Mandiri Group is committed to continuing to innovate and collaborate, driven by Mandiri Investment as an asset management company that has experience and competence.

"The independent group will encourage Independent Investment to be able to grow sustainably, maintain the quality of investment product management so that it can continue to compete at the national and regional levels and provide added value for investors," said Aquarius.

President Director of PT Mandiri Investment Management Aliyahdin Saugi explained, at the 2024 Market Outlook event with the theme Cruising the Crossroads on the Narrow Strait, Mandiri Investasi presented competent speakers who have a broad understanding of the macro economy and investment. A number of invited speakers, including: Deputy Minister of BUMN Kartika Wirjoatmodjo, Economist Chatib Basri, Global Market Strategic JP Morgan Asset Management Raisah Rasid, Executive Director of the KEHATI Foundation Riki Frindos, Managing Partner Verdhana Sekuritas Indonesia, Heriyanto Irawan and Head of Fixed Income Research Mandiri Sekuritas, Handy Yunianto.

Adi (Alyyahdin Saugi's nickname) said that in 2024, the world economy was influenced by several global issues, which became the main concern, namely differences in economic growth and slow inflation in decline plus geopolitical tensions. This global economic condition certainly affects Indonesia's economic condition. However, Indonesia's economic structure has experienced many developments, the election that has just been held is running peacefully which shows the strength of Indonesia's democracy.

Indonesia also recorded a trade surplus for 50 consecutive months, GDP growth in the first quarter of 2024 was still maintained above 5 percent. In terms of fiscal policy, Indonesia is able to use the budget in a disciplined manner and in terms of BI's monetary policy, it is proactive to maintain the rupiah exchange rate in the midst of the still high US interest rate.

Regarding investment, Mandiri Investment believes that taking into account the Environmental, Social and Governance or ESG aspects in the preparation of an investment portfolio, investors can play an important role in world sustainability and provide attractive returns benefits for investors. Through this Outlook Market, investors can gain a broad view regarding global economic conditions and the direction of domestic policy so that they can help investment decisions in the second half of 2024.

"Mandiri Investasi sebagai salah satu manajer investasi terbesar di Indonesia yang juga merupakan bagian dari Mandiri Group selalu berupaya memberikan solusi investasi yang pruden melalui produk-product investasi dengan variasi yang lengkap dari mutualdana konvensi hingga produk investasi alternatif. Pada 18 Juli 2024 MMI juga meluncurkan produk baru Reksa Dana Mandiri ETF SRI-Kehati untuk menjadi tambahan pilihan investasi dengan memperhatikan faktor ESG. Kami berharap Mandiri Investasi dapat selalu menjadi partner terpan dan berpercaya dalam perjalanan investasi," tutup Adi.