REPUBLIKA.CO.ID, JAKARTA -- PT Manulife Aset Manajemen Indonesia (MAMI) predicted a better growth in investment in stock market in the second quarter of this year after slowdown in the first quarter.
"We are optimistic that investment would grow. We see relaxation in investment," Head of Research of PT MAMI Katarina Setiawan said here on Monday (4/5).
Katarina said there was slowdown in growth of investment in the stock market in the first quarter of this year on a number of factors.
The budgets for government agencies were approved only in February, that government projects could not yet fully implemented, he cited.
In the second quarter of 2015, investment would grow because of improvement in the relaxation of policy such as in the implementation of the licensing service with integrated system of one stop service by the Capital Investment Coordinating Board (BKPM).
There was also relaxation in the regulation on advance payment for house purchases with credit or loan to value in the property sector by Financial Service Authority (OJK).
"Construction and infrastructure sector would perform well if infrastructure spending runs smoothly," Katarina said.
She said if gross domestic income rose only by 5 percent, infrastructure spending could increase 20-25 percent.
"In the second quarter, Indonesia's macro economy is expected to improve and listed companies would post higher profit," she added.
She said the country's economic development would be faster if the government continue policy relaxation in investment and realization of the government program especially in the infrastructure sector could run as expected.
The government is set to carry out a number of big projects such as the program of building one million units of low cost houses and power plants with a total capacity of 35,000 megawatts.
"Implementation of the projects would increase the market confidence and investment would increase," she said.
She predicted that in 2015, the net profit per share or earning per share growth is 9-12 percent , current account deficit (CAD) was 2.5-3 percent , inflation was 5.25-6.25 percent , Gross Domestic Product (GDP) was 5-5.5 percent and Bank Indonesia benchmark interest rate at 7-7.5 percent.
Meanwhile, head of Equity of PT MAMI Mohammad Anggun Indallah said in early 2015, the government is still in the process of preparation under the new leadership.
"In 3-6 months the new government has many things to be sorted out . Implementation of big program has not been as expected. But if the program could be implemented in the second quarter the impact would be good for the economy," Anggun said.
He said observers and investors should not predict economic growth based on the performance in the first quarter of this year.
"The mind-set of share and mutual fund investors should be long term . This is a transition after the general election. The new government is busy making preparations. Investors, therefore, have to closely watch the performance of the government," he said.
On Thursday last week, the composite index of the Indonesian Stock Exchange closed lower on worries over the impact of the country's economic slowdown.
"Slow global economic recovery has its impact on the Indonesian economy prompting a sell off by investors," chief researcher of NH Korindo Securities Indonesia Reza Priyambada said As a result there was foreign net sell of Rp1.323 trillion in Thursday trading.
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