Danantara Optimistic Investor Confidence Continues to Strengthen Along with the Rise of the JCI

JAKARTA - Danantara Indonesia is optimistic that investor confidence in Indonesia will continue to increase in line with the strengthening of the Composite Stock Price Index (IHSG) which reflects market confidence in the fundamentals of the national economy and the performance of Indonesian companies.

Danantara Indonesia Chief Operating Officer (COO) and Head of BP BUMN Dony Oskaria said the strengthening of the JCI and rupiah showed investors were increasingly confident in Indonesia's economic prospects in the long term.

"We are certainly grateful to all investors who have shown confidence in our economic fundamentals as well as the fundamentals of Indonesian companies. This good performance has made the JCI quite strong, including the rupiah which also shows strength," said Dony in an official statement, Sunday, June 14.

According to Dony, various issues and sentiments that develop in the market can indeed affect stock movements in the short term. However, investors will eventually return to assessing the strength of the company's fundamentals and the economic conditions of a country.

"Of course there are issues and sentiments that affect quite a bit, but in the end all investors will look at the fundamentals of the company and the country," he said.

Dony assessed that national companies, especially state-owned enterprises (SOEs), still have strong fundamentals in various strategic sectors. This condition is an important capital to maintain investor confidence while increasing the value of the company in the future.

"Friends can see that the fundamentals of our company, both banking, mining, infrastructure and other state-owned enterprises, are all good," he said.

Furthermore, Dony also responded to the share buyback or buyback action carried out by a number of state-owned companies. According to him, this step is a reasonable business practice when the stock price is not considered to reflect the company's fundamental value.

"Buyback is actually a normal process. If we see our shares are too low, of course we will take it. It's a pity that instead of investing elsewhere, it's better to invest with our own shares," he explained.

Dony believes that investor confidence in Indonesia will be stronger as long as the national economic fundamentals are maintained and the transformation of SOEs continues.

"If the goods are good, of course it would be a pity if we did not optimize it," he concluded.

In line with this optimism, the President Director of PT Bank Tabungan Negara (Persero) Tbk (BTN) Nixon LP Napitupulu said that the strengthening of economic fundamentals also needed to be supported by the movement of the real sector, including the housing industry which has a large multiplier effect on the economy.

Nixon said BTN continues to strive to encourage public demand for housing through various financing innovations so that the growth of the housing sector remains maintained.

"We must be able to create demand, not just wait for the market. Therefore, BTN continues to encourage various strategies so that the housing sector continues to move and the public still has access to buy houses," he said.

According to Nixon, BTN continues to maintain a prudent growth target in the midst of economic dynamics by strengthening business strategies through healthy credit expansion and asset quality management.

"We still believe that growth can be maintained. We think of all ways so that people can still have a house," he said.