Enthusiasm

In February 2024, Indonesia’s political landscape witnessed a significant event—the election of a new president for the next five years. The enthusiasm surrounding this election was particularly high among the young generation, who accounted for one-third of the total voters. The smooth electoral process garnered appreciation from global investors, resulting in substantial inflows into large-cap stocks.

Furthermore, the government’s increased social assistance to low-income communities has bolstered purchasing power. This positive catalyst is expected to enhance money circulation across various economic sectors. However, February 2024 also posed challenges due to rising rice prices in many cities, exerting pressure on other goods and services. Fortunately, this surge in rice prices is temporary, and upcoming harvesting seasons should alleviate the strain.

Looking ahead, domestic equity markets are poised for growth, fueled by several positive factors. These include dividends, as well as the festive season of Hari Raya Idul Fitri (Lebaran). However, it’s essential to keep an eye on the exchange rate of the Indonesian Rupiah, as the Federal Reserve’s monetary policy of maintaining higher rates for an extended period may impact global currencies.