On 11th June 2014 Bahana Securities in partnership with Daiwa Capital Markets hosted Indonesia Corporate Day 2014 – an annual forum providing capital market participants and strategic investors (both local and international) with the opportunity to engage in discussion with leading figures from relevant financial authorities and ministries. By focusing on the theme of ‘Political Beneficiaries’, the most recent instalment of this event facilitated an in-depth understanding of the presidential election’s potential impact on Indonesian industries. With representatives from each campaign team taking part in the panel discussion, event attendees benefitted from insights into what is to be expected from the incoming government.
Indonesia Corporate Day 2014 was headlined by keynote speeches from Mr Chatib Basri, Minister of Finance, and Mr Mirza Adityaswara, Senior Deputy Governor of Bank Indonesia. Following these opening remarks were two panel discussions, or ‘talkshow sessions’ featuring influential voices from Indonesia’s finance sector.
The first session, moderated by Bahana Securities’ Senior Economist Mr Arga Samudro, centred on economic issues in keeping with the topic ‘Will Indonesia’s Central Bank maintain tight monetary policy?’. Mr Edimon Ginting (Deputy Country Director for Asian Development Bank) and Mr Solikin M. Juhro (Director of Monetary Policy for Bank Indonesia) as panellists touched upon their expectations for Indonesia’s transition from Susilo Bambang Yudhoyono’s government to that of the president-elect, and like other speakers at the event expressed their hope that the new government would take steps to improve upon Indonesia’s economic fundamentals for the long term.
The second panel discussion addressed the question ‘Can the new president meet market expectations?’ and presented the views of Mr Iman Sugema as Economist Representative for PDI-P, Mr Hashim Djojohadikusumo and Mr Bara Hasibuan, MA, as representatives for Gerinda, as well as Dr Philips J. Vermonte, Head of the Department of Politics and International Relations at CSIS. Moderated by Bahana Securities’ Head of Equities and Research, Mr Harry Su, this session granted investors a first-hand look at the policies to be implemented by each presidential candidate.
In addition to covering the aforementioned topics, Indonesia Corporate Day touched upon the impact of external factors on Indonesia’s economy, such as the Federal Reserves’ impending move to tighten monetary policy – a course of action expected to have a substantial impact on global financial markets over the coming quarters. To prepare for this, Bank Indonesia discussed their projections for the market within the context of stabilising Indonesia’s financial market in the face of potential turmoil. With this information, those involved in capital markets will be able to anticipate future risk in determining their investment strategy going forward.
Indonesia Corporate Day also provided strategic investors with the opportunity to have one-on-one meetings with issuers given the BUY recommendation by the Bahana Securities research team. Among the companies represented at the event were Adaro (ADRO), Astra International (ASII), Bank BRI (BBRI), Mitra Adiperkasa (MAPI), Medco Energi (MEDC), Perusahaan Gas Negara (PGAS), Pakuwon Jati (PWON), and Wijaya Karya Beton (WIKA).
