Manulife Aset Manajemen Indonesia Optimis Amid Global Market Volatility

By : Wiyanto Dan Aldo Bella Putra | Thursday, April 26 2018 - 14:30 IWST

 PT Manulife Aset Manajemen Indonesia (Foto Dok Industry.co.id)
PT Manulife Aset Manajemen Indonesia (Foto Dok Industry.co.id)

INDUSTRY.co.id - Jakarta - PT Manulife Aset Manajemen Indonesia (MAMI) estimates that this volatility is expected to continue due to higher Fed interest rates, US protectionist policies and geopolitical conditions in Syria. Increased volatility in global financial markets. The Indonesian stock market was affected, down 1.08% (YTD 16 April 2018). The rupiah against the US dollar also weakened -1.66% (YTD per April 16, 2018).

Katarina Setiawan, Chief Economist & Investment Strategist at MAMI, said that Indonesia's financial market performance is expected to remain positive until the end of 2018. Investors are likely to get potential attractive yields from current volatility. Various factors from within the country contributed to the recovery of the Indonesian economy, such as increased government spending and subsidy expansion that underpins purchasing power, as well as growth in Gross Domestic Product (GDP).

"The investor community does not need to panic with what is happening in the market. The increase in US interest rates has been anticipated by the market, "he said in Jakarta on Thursday (26/4/2018).

Katarina further explains that there are several factors supporting Indonesia's financial market, "Firstly, the central bank in the Asian region will generally keep interest rates low amid the Fed rate increase. Low interest rate policy can still be done because of inflation stability, synchronization of global growth, and priority to boost economic growth," he said.

"Secondly, learning from past experiences, trade tensions between the United States and China are unlikely to develop into a trade war. Moreover, overall, Asian trade exposure to the United States is still quite under control. If tensions increase, there is the potential that Indonesia's product competitiveness will increase and provide benefits for Indonesia. Third, geopolitical tensions in Syria that might increase the price of oil are actually potentially increasing Indonesia's GDP. Fourth, Bank Indonesia remains committed to maintaining the stability of the rupiah exchange rate as a key in reducing the volatility of the financial market," said Katarina.

News Comment

Today's Industry

President Jokowi (Photo by: BPMI Presidential Secretariat)

Kamis, 17 Juni 2021 - 14:52 WIB

President Jokowi Calls for Collaboration for Advanced Indonesia with Excellent Human Resources

President Joko “Jokowi” Widodo has urged all stakeholders to contribute to forge and prepare excellent Indonesian human resources by collaborating to realize the Merdeka Belajar (Freedom…

President Jokowi on Monday (14/06/2021) inspects mass COVID-19 vaccination at the Patriot Candrabhaga Stadium, Bekasi, West Java. Photo by: BPMI of Presidential Secretariat

Selasa, 15 Juni 2021 - 22:15 WIB

President Jokowi Inspects Mass COVID-19 Vaccination in Bekasi

President Joko “Jokowi” Widodo on Monday (14/06/2021) inspected mass COVID-19 vaccination at the Patriot Candrabhaga Stadium, Bekasi, West Java.

President Jokowi inspects mass COVID-19 vaccination at Pluit Dam, Jakarta. (14/06/2021). (Photo by: Press Media and Communication Bureau of Presidential Secretariat/Laily)

Selasa, 15 Juni 2021 - 20:31 WIB

President Jokowi Says Jakarta Must Provide 100,000 Doses of Vaccine Per Day

President Joko “Jokowi” Widodo Monday (14/06) inspected mass COVID-19 vaccination at Pluit dam in North Jakarta.

Minister of Cooperatives and SMEs Teten Masduki with Bandung Culinary Community at Orbital Dago, Bandung city, West Java province. (11/06/2021). (Photo by: PR of Ministry of Cooperatives and SMEs)

Selasa, 15 Juni 2021 - 19:00 WIB

Minister Urges SME Players to Build Joint Brand to Boost Competitiveness

It is important for businesses to achieve economies of scale to boost competitiveness, according to Minister of Cooperatives and Small and Medium Enterprises (SMEs) Teten Masduki. The Minister…

Minister of Manpower Ida Fauziyah delivered a statement in the Presidential Office, Monday, (10/8). Photo by: BPMI

Selasa, 15 Juni 2021 - 17:50 WIB

Gov’t Committed to Eliminating Child Labor: Minister

Minister of Manpower Ida Fauziyah has reaffirmed the Government’s commitment to eliminatie child labor. The Minister delivered the statement in her keynote speech at “End Child Labor: Virtual…