Jakarta. Swedish asset manager Coeli Asset Management has entered Indonesia’s stock market for the first time, buying shares of GoTo Gojek Tokopedia (IDX: GOTO) and Bank Central Asia (IDX: BBCA) as the Jakarta Composite Index has fallen about 30% this year, pushing valuations of several companies well below historical averages.

Jason Gozali, head of research at Pluang Maju Sekuritas, said the timing of Coeli’s entry was more notable than the size of its investment, as valuation-focused investors are beginning to find opportunities in a market that has fallen out of favor with global investors.

“The correction has pushed many stocks to trade well below their historical averages. The choice of GOTO and BBCA also represents two different stories: GOTO’s fundamental recovery story and BBCA’s strong fundamentals,” Jason said in Jakarta on Monday.

Coeli, which is based in Stockholm, had been monitoring Indonesia for several years but previously considered valuations too expensive. The market correction prompted the fund manager to raise its Indonesia allocation to nearly 6% of its portfolio, with GOTO and BBCA among its picks.

Jason said investors should focus on GOTO’s fundamental performance rather than simply viewing Coeli’s investment as a positive signal.

GoTo’s financial services business, driven by GoPay, has continued to expand, with its loan book growing 58% year-on-year. The company also posted net profit for two consecutive quarters in the first half of the year.

Its ride-hailing business, however, remains under pressure from the 8% commission cap that took effect in July. The full impact of the policy is expected to become clearer in GOTO’s third-quarter financial results.

The company is also evaluating a reverse stock split and plans to cancel 32 billion treasury shares. Its Rp 3.5 trillion ($195.18 million) share buyback commitment is another factor being watched by investors.

Following the removal of the Rp 50 minimum share price, GOTO’s share price can now move more freely according to market supply and demand. Jason said the third-quarter results would be a key test of the company’s underlying fundamentals.

While Coeli’s entry suggests Indonesian equities are beginning to attract valuation-driven investors again, Jason cautioned against viewing a single foreign investor’s move as evidence of a broader market reversal.

Structural risks, including issues surrounding Indonesia’s MSCI classification, remain a concern for the market.

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