ECONOMIC UPDATE - BoP review - Macroeconomic buttress

Current account balance posted a higher surplus at USD4.38 bn in 3Q22 (1.28% of GDP). It was higher than consensus at USD3.25 bn so it brings positive sentiment towards market.

ECONOMIC UPDATE - Monetary review - Hawkish pivot

For a third consecutive months, Bank Indonesia (BI) delivered a 50 bps rate hike on BI-7DRRR to 5.25% in Nov-22 or in line with consensus.

Fund Performance

Market Outlook 2023: Equity Strategy

Indonesia is the best performing market in Asia and among the world’s best-performing emerging markets this year. 

Market Outlook 2023: Banking Sector

Banks under our coverage should perform really well in 2022F with earnings grew 33% YoY.

Market Outlook 2023: Telco Sector

In YtD 2022, competition has been stabilizing for telecommunication (telco) industry and we foresee the trajectory to remain positive for at least a few more quarters. 

Market Outlook 2023: Technology Sector

Indonesia digital economy value is expected to grow almost 5x from 2021-2030F from the value of USD70 mn in 2021 to USD330 mn in 2030F. 

Market Outlook 2023: Consumer Sector

The consumer staples sector has been under pressure in 2022 owing to a surge in global commodity prices. 

Market Outlook 2023: Coal Sector

With the Russian coal and gas import ban still firmly in place, coal consumption in the European Union is expected to rise by 7% in 2022 on top of last year’s 14% jump.

Market Outlook 2023: Metal Mining Sector

After rising to a record high (USD48,078/ton in mid-March) following the Russian invasion of Ukraine late in February, nickel prices have taken a beating dropping to a low USD19,385/ton in July. 

Market Outlook 2023: Property Sector

Residential sales in the primary market have shown recovery following deep contraction in 2020 amidst pandemics. 

Market Outlook 2023: Construction Sector

The four SOE contractors under our coverage showed acceleration in new contracts growth of 41% YoY in 8M22 to a total of Rp44 tn supported by economic recovery from Covid-19. 

Market Outlook 2023: Plantation Sector

As seen on Exhibit 164, palm oil is the most widely consumed vegetable oil and is estimated for 2022, the palm oil consumption amounted to over 73.87 mn mt worldwide.

Market Outlook 2023: Healthcare Sector

Government allocates Rp169.8 tn Healthcare budget in 2023. We see healthcare budget declined compared to 2022, this due to the absence of Covid-19 budget.