Jakarta. Fintech startup Pluang recently said that 2023 should create great momentum for retail investors to renavigate their portfolios, as the Indonesian government has already lifted Covid-19 restrictions, thus signaling economic recovery.

According to Pluang's corporate communications head Kartika Dewi, the looming global economic recession will have little to no impact on Indonesia. The Southeast Asian country has been showing a positive economic trend, booking a 5.31 percent growth in 2022. Indonesia's consumer confidence index climbed to 123 points this January from 119.9 points in December 2022. 

"Judging by these indicators, Pluang sees the 2023 Q1 as a great start for the post-pandemic economic recovery,”  Tika said in an interview with the Jakarta Globe on the sidelines of the 2023 Economic Outlook forum in Jakarta on Tuesday.

“We are entering the post-Covid era. The lifting of the Covid-19 restrictions, as well as the ramp-up in economic activities show that the government shares a similar optimism by boosting domestic spending, purchasing power, and investment in the industry and tourism sectors. So 2023 can be a great momentum for retail investors to start renavigating their portfolio,” Tika said.

The number of retail investors is currently on the rise. The Indonesia Central Securities Depository (KSEI) data showed there are more than 10 million retail investors that invested in Indonesia’s capital market as of Nov. 2022, marking a 35.53 percent increase in 2021.

“The Covid-19 pandemic is a blessing in disguise as people are becoming aware of the need to save money and generate income from assets. This has become an opportunity for companies to secure funding through the capital market,” Tika said.

“And it is not just the capital market that people are interested in. They are also keen on digital assets. Regulators should facilitate this positive trend to help encourage people to diversify their assets,” Tika told the Globe.

Pluang's user base has more than doubled from 4 million at the beginning of 2022 to 8.8 million by the end of the year.

“I think it has now topped 10 million users. Our users are diversifying their assets. So for instance, it is not just digital gold, but they are also investing in crypto assets, mutual funds, and even US stocks. We are telling our users to not put all their eggs in one basket,” she said.

When asked by The Globe about Pluang’s target for this year, Tika replied: “We would be grateful if [the user base] rises, but we would also like to boost the engagement with our existing users.”

Earlier that day, the Indonesian Fintech Association (AFTECH) told the 2023 Economic Outlook forum that stocks would be an attractive instrument to invest in this year despite the volatile market. The government’s lifting of Covid-19 curbs and the 2024 elections are also forecast to affect stock prices in the second semester of 2023. 

In addition to stocks, investors may want to consider bonds in the second semester of 2023 as the yield of government securities would become more stable. Indonesian central bank BI’s decision to increase the interest rate to 5.75 percent in January, coupled with analysts' predictions for an increase of 25 bps this month, can potentially make the money market mutual funds more attractive.

“The political year affects the uncertainties in Indonesia, including investment. Political stability was pivotal to driving the growth at the Indonesian Stock Exchange last year, including GoTo’s initial public offering [IPO] which was a huge success,” Claudia Kolonas, the head of the asset management department at AFTECH and Pluang co-founder, said.

Read More:

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