Jakarta, INTI - Amid global uncertainty, DBS Research assessed that value-added sectors remain the main attraction for Indonesian investment, especially the electric vehicle (EV) ecosystem, nickel downstreaming, renewable energy, and infrastructure development. William Simadiputra, Head of Research at DBS Group, emphasized that consistent downstreaming policies will be a crucial factor in maintaining foreign investor interest.
"The EV ecosystem, nickel processing, renewable energy, and infrastructure sectors remain key pillars of growth. Consistent downstreaming policies will be a major draw for foreign investors amidst the current uncertainty," William said in a DBS Research newsletter.
DBS Research noted that investment credit continues to grow positively, particularly in the construction, mining, and agriculture sectors. However, global risks such as the Middle East conflict, rising oil prices, the weakening rupiah rate, and the weather risks from El Nino could increase price pressures in the coming quarters.
Maintaining Financial Stability
DBS Research also assessed that Bank Indonesia is expected to focus more on maintaining rupiah stability and market liquidity with a more hawkish monetary policy. DBS Research also believes that strengthening institutions, financial market reform, and increasing the role of domestic investors are crucial to maintain long-term financing stability.
Furthermore, the development of renewable energy and waste-to-energy (WTE) projects is considered to strengthen Indonesia's ESG credibility in the eyes of global investors. DBS emphasized the importance of fiscal and monetary coordination, the sustainability of infrastructure projects, and accelerating the development of the EV ecosystem to maintain investment attractiveness.
Conclusion
DBS Research assessed that the EV, nickel downstreaming, renewable energy, and infrastructure sectors remain key investment attractions in Indonesia amid global uncertainty. Although investment credit continues to grow positively, global risks such as the Middle East conflict, rising oil prices, the weakening rupiah, and El Nino have the potential to increase inflationary pressures. DBS also emphasized the importance of financial market reform, institutional strengthening, and increasing the role of domestic investors to maintain long-term financing stability.
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