The Jakarta Post
Bareksa, an online mutual fund marketplace, has reported an increase in its assets under management (AUM) by 20 percent despite plunging Indonesian stocks as a result of COVID-19 pandemic fears.
The company had accumulated more than Rp 2 trillion (US$132.6 million) in AUM by March 15, a 20 percent increase from December 2019. The figure grew by 12 percent from February, at a time when the Jakarta Composite Index (JCI) plummeted 17 percent.
The AUM growth was supported by an increase in mutual-fund products and the government’s retail sharia bonds purchased over the last month, among other things. The company also reported an increase in customers to 800,000 by March 15.
“This phenomenon shows financial technology’s potential to stabilize the market during an upheaval in Indonesia’s financial sector,” Bareksa CEO Karaniya Dharmasaputra said in a statement on Monday.
Indonesian stocks continued their steep fall on Tuesday, crashing to a level unseen since 2015, following the Dow Jones’ worst decline since Black Monday in 1987. The JCI closed the session 4.99 percent lower at 4,456.75 after tripping a circuit breaker around an hour before the session concluded.
Investors around the world dumped riskier assets amid fears that the COVID-19 pandemic will weaken global economic growth. Indonesia reported 172 confirmed cases and five deaths from the pneumonia-like illness on Tuesday amid the government’s call on all citizens to implement social distancing to contain the virus spread.
Bareksa gave an assurance that its business was still operating normally even though the company implemented a remote working policy for its employees in line with the government’s advice.
“Customers can still run transactions through our website and Bareksa’s mobile application,” the statement reads. (mpr)