The Jakarta Post
The mushrooming infrastructure projects that the government has driven since 2015 are likely to attract more fund managers to issue mutual funds with infrastructure-based stocks as underlying assets.
According to Panin Asset Management director Ridwan Soetedja, the government’s long-term priority to accelerate infrastructure development was aimed at overcoming the country’s development lag. Therefore, the sector would be more attractive to fund managers.
"The execution of infrastructure development across Indonesia in the current administration is very good. We believe that investment in the infrastructure sector will provide bright long-term prospects," he said in Jakarta on Wednesday.
He added that the government would be more aggressive in the infrastructure sector this year, indicated by Jokowi’s periodic checks on ongoing projects.
Moreover, budget allocation for the infrastructure sector ballooned to Rp 290 trillion (US$22 billion) this year. "It is the biggest infrastructure allocation in Indonesia’s state budget history," Ridwan said.
Panin Asset Management tried to seize the moment by launching a mutual fund, namely Panin Dana Infrastruktur Bertumbuh, with underlying assets in infrastructure and its supporting sectors.
Panin Asset Management manager Jimmy Hidayat added that many infrastructure-related stocks would benefit from the government’s pro-infrastructure policy such as banking, construction, cement and property.
"The benefits are not limited to the directly related stocks, as there is a multiplier effect on other sectors," he said. (ags)