CIMB Values Indonesia as Still Attractive for Long-Term Investment

Amid the dynamics of Indonesia’s financial market this year, several regional financial institutions see opportunities to strengthen their business expansion in the country. One of them is CIMB Group Holdings Berhad, which has reaffirmed its commitment to the Indonesian market while opening up opportunities for corporate actions through mergers and acquisitions (M&A). In an article cited by Bloomberg.com, CIMB Group Chief Executive Officer Novan Amirudin expressed optimism about Indonesia’s long-term prospects. “For investors who see Indonesia’s long-term potential, now is certainly the right time to enter,” Novan said. Novan also stressed that CIMB remains fully committed to the Indonesian market. The statement reflects the confidence of one of Southeast Asia’s largest banking groups that Indonesia’s economic fundamentals remain attractive to both regional and global investors. CIMB’s positive view comes as Indonesia faces relatively challenging market sentiment. At the same time, investors are scrutinising various government economic policies. Nevertheless, CIMB sees these conditions as momentum to expand its business. CIMB is reportedly evaluating a number of assets that could strengthen its business portfolio in Indonesia, particularly in the wealth management segment and other specialist financial services. “We will also consider a number of more specific business areas that we do not currently have,” Novan revealed. This expansion step aligns with the ongoing consolidation trend in the Southeast Asian banking industry. Indonesia, as the region’s largest economy, is considered to still offer attractive growth potential, supported by a large population, continuously developing financial services, and increasing financing needs for infrastructure development and economic transformation. Optimism towards Indonesia was also conveyed by Malayan Banking Berhad (Maybank). Maybank President and Group CEO Khairussaleh Ramli assessed that the Indonesian economy is still in a promising growth phase for the medium to long term. Although acknowledging operational challenges and market dynamics that need to be monitored, Maybank still sees Indonesia as one of the strategic markets in its regional business network. Currently, Indonesia’s contribution to the Maybank group’s profit reaches around 5 percent. The views of Malaysia’s two largest banks illustrate that behind the current market volatility, Indonesia is still seen as an investment destination with long-term prospects. For strategic investors, periods of market pressure are often considered opportunities to strengthen positions and capture growth potential when economic conditions stabilise again.