“Eastspring Indonesia Market Outlook 2019: "Keep Calm and Invest On"

26 Feb 2019

Jakarta, February 26, 2019 - PT Eastspring Investments Indonesia (“Eastspring Indonesia”) today held its 2019 market outlook event, titled “Keep Calm and Invest On,” at Hotel Mulia in Senayan, Jakarta. At the event, speakers discussed investment markets, the impact of political disturbances, market volatility, global growth and inflation, with agreement that with the right investment strategy, investors can turn significant market events into opportunities.

Eastspring Indonesia CEO Alan T. Darmawan called 2019 a dynamic year that promises to be full of surprises, both within Indonesia and beyond.

“Globally, the US-China trade war, Brexit and China’s pledged stimulus measures could be make-or-breaks for world markets. In Indonesia, the coming year will be dominated by political contests that could increase  the market volatility. This should be treated not as an obstacle but as an opportunity to plan a sound investment strategy. Our hope is that however these issues play out, they accelerate economic growth in Indonesia,” said Mr Darmawan.

Eastspring Indonesia’s Chief Investment Officer, Ari Pitojo, believes three main themes are playing an influential role in the market in 2019: US interest rates, the synchronization of the global economy, and the US-China trade war. He also believes long-term trends such as climate change and artificial intelligence will continue to gain in significance and alter the investment map.

Locally, the Indonesian government’s massive infrastructure and human capital programmes have given rise to a new model of economic growth in the country, which is experiencing a shift from consumption to investment led growth.

“Given the country’s economic resilience, we believe Indonesia will continue to be one of the most interesting investment destinations for foreign investors from around the world for years to come,” said Mr Pitojo.

The market outlook event featured several speakers including, Eastspring Investments Global Strategist, Robert Rountree, who gave a presentation titled, “Changes and the Impact on Investment Strategy/Policy”. Rhenald Kasali, an economics professor at the University of Indonesia, spoke about how the nation could increase its competency in the international arena in a talk titled, “How to Improve and Maintain Indonesia’s Relevance with Global Changes in Demography, Technology and Politics”. Rustika Herlambang, from Indonesia Indicator, a strategic intelligence firm, discussed the role of big data in political campaigns, in a talk titled, “Hope and Voter Mapping in Indonesia”.

The event also marked the official launch of Eastspring Indonesia’s 2019 Market Outlook Booklet, titled “Keep Calm and Invest On,” for customers and business partners. The book can be downloaded for free at eastspring.co.id.

As one of Indonesia’s largest investment managers, with more than 86.73 trillion rupiah ($6.17 billion) of assets, covering mutual and discretionary funds (as of December 28, 2018), Eastspring Indonesia is looking to strengthen its sales network and expand its institutional customer base over the next year.

Eastspring Indonesia’s mutual fund products are divided into groups of conventional and shariah. Each is managed by placing a portfolio on stock instruments, such as, fixed income, and money market.

Two of Eastspring Indonesia’s largest mutual funds are the Eastspring Investments Alpha Navigator, with assets under management (AUM) totaling 264.79 billion rupiah, as of December 28, 2018; and Eastspring Investments Value Discovery, with AUM totaling 3.34 trillion rupiah.

Our fixed income mutual funds include Eastspring Investments Yield Discovery, with AUM totaling 298.69 trillion rupiah; Eastspring Investments IDR High Grade, with AUM totaling 612.94 billion rupiah, and Eastspring IDR Fixed Income Fund, with AUM totaling 6.35 trillion, as of December 28, 2018. Our money market mutual funds include Eastspring Investments Cash Reserve, with AM totaling 3.79 trillion rupiah.

Our shariah mutual funds include equity funds such as Eastspring Syariah Islamic Asia Pacific USD, with AUM totaling US$28.95 million; and fixed income mutual funds such as Eastspring Syariah Fixed Income Amanah, with AUM totaling 640.36 billion rupiah, as of December 28, 2018. We also offer Eastspring Investments Syariah Money Market Khazanah, which places managed funds in Indonesian money market instruments.

 

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