ECONOMIC UPDATE - Inflation - The end of disinflation

After we experienced the end of three months monthly deflation, now we can say the disinflation had to end as well. Disinflation itself is when price inflation slows down temporarily.

ECONOMIC UPDATE - BoP review - First surplus since 2011

Bank Indonesia (BI) reported Indonesia’s balance of payments (BoP) surplus of USD2.05 bn in 3Q20 (vs. USD0.04 bn deficit in 3Q19).

Fund Performance

ECONOMIC UPDATE - Monetary review- Favorable rate cut

Bank Indonesia (BI) cut its benchmark interest rate by 25 bps to 3.75% in Nov-20. In contrast, our expectation and consensus saw that BI would hold the rate unchanged previously.

ECONOMIC UPDATE - GDP - Escaping the worst

As anticipated before, Indonesia entered the first recession since the 1998 Asian Financial Crisis as the economic contraction was recorded in 2Q20 and 3Q20.

STRATEGY REPORT - Market mood on the mend

The JCI dropped by 7.0% in September to 4,870  level ,  in-line with global markets that were in a sea of red led by the slump in US stocks and profit taking activities.

Market Outlook 2021: Healthcare Sector

Indonesian government sets Rp169.7 tn of healthcare budget allocation in 2021 (-20.1% YoY), representing 6.2% of state budget in 2021 (.vs 5.23% of state budget in 2020). Government allocate lower budget, as some of the healthcare equipment that was already purchased in 2020 can still be used in...

Market Outlook 2021: Equity Strategy

The global markets look optimistic on the shape of the economic recovery going into 2021 supported by further easing of movement restrictions, boost in fiscal spending, low interest rates and vaccine developments. 

Market Outlook 2021: Consumer Sector

We like consumer staples next year due to potential tailwind from the key raw materials prices which could uphold consumer staple companies’ margin. 

Market Outlook 2021: Telco Sector

Telecommunication (telecom) sector is still in the structural transition phase from legacy services (voice and SMS) to data services. The stage of the transition, however, is different from one another.

Market Outlook 2021: Tower Sector

Indonesia is still in early stage of data adoption. With low data usage per subscriber, low smartphone penetration and relatively young population, we think data consumption still has long runways. 

Market Outlook 2021: Metal Mining Sector

Nickel prices slumped to USD11,225/ton Ytd in March 2020 because of China’s pandemic situation and steel mill shutdowns in 1Q20 as China contributing around 52% of the world stainless steel production.  

Market Outlook 2021: Toll Road Sector

It seems Indonesian government will not take down their ambitious plan to continue expanding the toll road network. Based on our check, up until 2019, the total toll road in operation has reached 2,166 km.

Market Outlook 2021: Property Sector

The coronavirus pandemic has a huge impact on property markets around the world. With the massive unemployment, wage cuts, business failures, and job uncertainty, many people are likely to be cautious about making big investments such as home purchase which leads to falling house prices.