Mirae Asset Sekuritas Reveals Market Actors Look Forward To BI Rate Reduction

JAKARTA - PT Mirae Asset Sekuritas Indonesia stated that capital market players are looking forward to cutting the benchmark interest rate of Bank Indonesia or BI rate and other government policies that are more pro-market.

Head of Research & Chief Economist Mirae Asset Rully Arya Wisnubroto said that currently the open benchmark interest rate reduction space is still supported by fundamental conditions such as the large foreign exchange reserves and controlled inflation.

"With these conditions, we predict this month is the right time to cut interest rates, because flower rate cuts are rare in the second quarter of 2025 due to dividend repatriation where US dollar needs are increasing amid the stock exchange dividend season," Rully said on Media Day, March 12.

Rully said, with the repatriation of dividends, the space for cutting the benchmark interest rate of Bank Indonesia only existed in the third quarter.

In addition, according to him, another policy that has been issued by the government and still supports domestic macroeconomic conditions is the extension of the Export Result Foreign Exchange (DHE) policy where foreign export value must be placed domestically in the next year.

Rully said that the policy was considered sufficient to maintain the rupiah exchange rate amid pressure from the US dollar.

The position of the rupiah exchange rate in the last 30 days is in the range of Rp. 16,300. Where Rupiah was first recorded to have penetrated the level of Rp. 16,000 in December 2024.

Rully conveyed that another policy that has been executed by the government is the electricity tariff incentives of 50 percent in January and February as well as incentives for economic aircraft fares in the homecoming season ahead of Eid.

On the other hand, Rully said that one of the policies that market players are waiting for from the government is a more pro-market policy.

"One form of pro-market policy is the government's policy that can increase investor confidence to invest in Indonesia, when raging the 2nd Trade War that US President Donald Trump announced earlier this year," he explained.

Similarly, Head of Priority Wealth Management Mirae Asset Marcia Gunawan said that in the midst of fluctuating market conditions, there is a premium wealth management service for customers or igh Net Worth Individual (HNWI) named Sage Club.

Marcia conveyed that the holistic Sage Club service allows customers to receive more in-depth updates when the market is in great turmoil like it is today because every member of the Sage Club has access to special facilities such as Relationship Manager, Stock Dealer, Research Analyst, and Customer Service.

Our focus at the Sage Club is to create more value in investing in premium customers, each of which is unique (tailored service), so that our premium service can also provide advice more intensely when the market is as volatile as it is today," Marcia said.