If There Is No Transverse Study, IHSG Has The Opportunity To Go To Level 7,400

Illustration. (Photo: Unsplash)

JAKARTA - The Indonesian capital market is predicted to continue experiencing a positive trend in 2021. President Director of UOB Asset Management Indonesia Ari Adil said the projection is based on the average JCI data for 10 years, assuming an increase in earnings per share (EPS) of 25 percent in the year. 2021.

This was revealed in the Zoom webinar organized by Pluang, in collaboration with PT UOB Asset Management Indonesia, on Thursday 3 February. Ari added that investment flows are likely to increase along with the Omnibus Law and economic recovery in 2021, which will boost EPS growth and curb the trend of capital outflows.

Thus, the capital market will still be an attractive investment area for investors amid the COVID-19 pandemic. In addition to the potential for EPS to grow, low benchmark interest rates will also create interest in risky assets such as stocks, "said Ari.

Ari explained that Bank Indonesia still has the possibility to lower its benchmark interest rate by 25 basis points in the first semester of this year. Thus, the flow of foreign funds should return to Indonesia in line with investors' interest in turning to riskier assets such as stocks to obtain higher potential returns.

In addition, Ari said that the planned US $ 1.9 trillion COVID-19 stimulus package would also bring inflow to Indonesia. The stimulus is expected to boost the flow of funds to rupiah-denominated bonds. This event will reduce pressure on the current account deficit and maintain the stability of the rupiah exchange rate. This should boost commodity prices and benefit Indonesia.

In addition, he said that since the inauguration of the Omnibus Law last year, it will be the strongest investment fundamental sentiment in the long term. In fact, the implementation of the Omnibus Law can also make Indonesia one of the countries with the best economic growth projections compared to other countries this year.

Ari added that Indonesia's long-term fundamentals are supported by the Omnibus Law, which has the potential to improve Indonesia's investment climate and reduce Indonesia's dependence on commodities.

Investing Tips 2021

Ari also shared tips on investing in this webinar session. According to him, before investing, people need to determine their investment goals and risk profile, seek advice from investment professionals who have the appropriate permits from the capital market regulator, and understand the investment products purchased.

He added that fixed income mutual funds and money market funds can be used as options for diversifying portfolio assets for now due to their relatively low risk profile. However, every time you invest in mutual funds, the public should know the investment manager who manages their funds, as well as the safety and transparency of their products.

At the end of the session, Pluang Community & PR Strategist, Priscilla Siregar urged the public to invest from an early age. The public is also advised to be careful in choosing investment products, not to be careless, and to be diligent in monitoring market movements through the latest news.

"Investments should start as early as possible, especially now that starting investment is easier and more affordable. Currently, starting from Rp. 8,000, people can invest in gold commodity products," said Priscilla.