There Is A Digital Transformation, The Stock Market Is Still An Investment Choice Instead Of Bonds

Illustration. (Photo: Doc. Antara)

JAKARTA - Minister of Communication and Information (Menkominfo) Johnny G Plate said Indonesia could become the center of the digital economy in Southeast Asia.

Based on data from global consultant Kearney, digital consumers in Indonesia will reach 219 million in 2021 with the potential for the digital economy in terms of gross merchandise value (GMV) of USD 146 billion in 2024.

"This potential will continue to increase to reach 316 billion in 2030 US dollars. "This potential is not only from urban areas, but has begun to shift from metropolitan cities to non-metropolitan cities," Johnny explained in HSBC Wealth Outlook 2022, quoted Sunday 27 February.

Johnny explained that the digital economy in tier two and tier three cities, which are slow adopter cities for the digital economy, could grow three times in 2025 and contribute 30-50 percent to the overall digital economy.

With this growth, Johnny said there are six industries that will develop, namely e-commerce, healthtech, fintech lending, edutech, payment, and ride and delivery. "The fintech industry is even very supportive of the business continuity of MSME players during the pandemic," he said.

In order to capture the digital transformation opportunity, HSBC Indonesia Head of Wealth Development Verawaty Zhao said the stock market is still a priority for investment portfolios with positive returns and higher than bonds.

This is supported by expectations of a growth phase after the pandemic. "The technology sector will continue to excel in the midst of the world's adoption of a digital-based lifestyle that allows people to stay ahead amid uncertainties such as the current pandemic," said Verawaty.

Verawaty added, capital flows will continue to enter the Indonesian stock market as the technology sector develops. A number of IPO plans for technology companies in the next 12 months are the catalyst for further inflows of foreign funds.

"Investment opportunities will emerge in sectors related to digital transformation such as cloud computing, AI/Machine learning and analytics, Internet of Things and electrification, financial technology and digital payments, digital customer engagement and 5G," added Verawaty.