Video: Investor Strategies to Secure Liquidity Amidst War Concerns - MSCI

The Indonesian financial market continues to face a range of domestic and international sentiments that are increasing caution among market participants. Currently, tensions in the Middle East remain unresolved with the heating up of relations between the US and Iran, while domestically, issues related to monitoring by index providers such as MSCI and S&P DJI concerning stock market transparency are also a concern.

Majoris Asset Management CEO, Zulfa Hendri, assesses that the shocks to the capital and financial markets in Indonesia over the past three months can still be managed well, even though volatility persists. The impact of this market turmoil has also been felt by domestic producers and industries, but it is still manageable.

Amidst the market shock and the current large outflow of foreign funds, the role and strength of local investors are becoming increasingly important in maintaining market stability. At present, the valuation of the Indonesian stock market is very cheap, presenting an opportunity for investors, while the bond market is also beginning to stabilise.

Zulfa Hendri stated that market participants currently tend to secure liquidity by moving into the money market to reduce risk. This is reflected in Majoris AM’s market performance, which continues to grow rapidly.