Jakarta, CNBC Indonesia – PT Mirae Asset Sekuritas Indonesia believes there are several sectors that will still grow quite positively next year in line with the direction of improvement in the domestic economy.
Head of Research Mirae Asset, Hariyanto Wijaya, said that although the Indonesian economy has been confirmed to have experienced a recession, the trend has shown improvement. This is projected to continue until 2021.
The driving catalyst is the improving stock market. The main sentiment is that the market is still waiting for the latest developments regarding vaccines.
“The economy is down because of Covid-19, this is waiting for the vaccine, if it is distributed, the economy will recover, this will have a positive effect on economic growth and sentiment in Indonesia,” said Hariyanto, in his presentation virtually, Friday (11/13/2020).
Another positive catalyst is the election of Joe Biden as president of the United States. Joe Biden and his running mate, Kamala Harris, are currently ahead of the incumbent Donald Trump-Mike Pence in the US presidential election held on November 3.
According to him, Biden’s economic policy is considered to be more accommodating with China even though it does not promise relaxation of tariffs with the Bamboo Curtain country.
Then, for Indonesia, one of the positive impacts with the election of Biden is investment opportunities in the sector green energy and infrastructure, considering that it is the focus of Biden’s campaign promise on new and renewable energy.
“Compared to the inconsistent Trump, market tend to like reassurance. Biden tends to be predictable, “said Hariyanto.
Mirae said at least three sectors have the opportunity to grow positively in the next year, namely first, the property sector.
This sector is considered to be quite positive next year in line with the impact of the Employment Creation Law (Omnibus Law) which allows non-residents to buy apartments in Indonesia.
Second, the sectors that will still tend to be stable are consumer issuers such as PT Indofood CBP Sukses Makmur Tbk (ICBP) and PT Indofood Sukses Makmur Tbk (INDF).
Although there is a risk of decreasing purchasing power by not raising the Regional Minimum Wage (UMR) in the majority of provinces in Indonesia given the Covid-19 factor that is still hitting the business side, consumption of instant noodles is still increasing.
Meanwhile, INDF will benefit from supervising companies in the palm oil sector. Mirae also predicts that this sector will grow positively next year.
“The commodity sector is attractive next year. China’s economy is recovering. Commodities excluding oil will grow,” he explained.
(bag bag)
– .
