Indonesia’s Economy Still Strong, Capital Market Still Promising

Danareksa Investment Management’s chief investment officer, Herman Tjahjadi, said that the Indonesian capital market is still promising with foreign investors who have entered the JCI stock market of Rp70 trillion since the beginning of the year. This means that global investors still view positively the Indonesian economy which continues to have the potential to grow.
“Towards entering the new year (the end of the year), it is likely that Indonesia’s GDP growth will still be positive, which is around 5.20%, this is good compared to other countries,” he said at the 2022 CNBC Indonesia Awards ‘The Best Asset Management’, Friday (14/10/2022).
He added, for 2023 it is estimated that Indonesia’s GDP will grow at the level of 5-5.1%. Even though there is an indication of a decline compared to this year, this figure is still very good compared to other countries. When global investors see that Indonesia’s economic growth is still positive, investment interest will not disappear.
Another factor that becomes the criteria for global and domestic investors to enter the country’s capital market, one of which is currency. As is known, the Rupiah depreciated by 7%, but according to him, when compared to other developing country currencies, Indonesia is still considered to be better. Furthermore, another factor is Indonesia’s inflation rate, which according to him is better than other countries, which is only around 5.59%.
“Even the United States is now 8.2%. These three factors (GDP, Currency, and Inflation) are relatively better than other countries,” said Herman.

October 14, 2022, CNBC Indonesia