Analyst Says Indonesia’s Capital Market Can Be A Blessing From The Russo-Ukrainian War

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Analyst Says Indonesia's Capital Market Can Be A Blessing From The Russo-Ukrainian War

JAKARTA — The Associate Director of Research and Investment of Pilarmas Investindo Sekuritas Maximilianus Nico Demus said the Indonesian capital market could be a blessing from the Russia-Ukraine war.

The reduction in global economic projections due to geopolitical tensions is considered to raise the prospect of investment flows to the capital markets of developing countries with good economic fundamentals.

“In particular, Indonesia, which has a sovereign rating, rupiah exchange rate, and yield is still relatively well maintained,” he said through his research, Monday (14/3/2022).

Since the beginning of the year, the projected global economic growth for 2022 has been trimmed to 4.4 percent from 5.5 percent in 2021.

This decline was partly due to the ongoing pressure in the world’s two largest economies, firstly in the United States due to the acceleration of monetary policy and ongoing supply chain disruptions.

Then in China, where there is an economic slowdown due to the energy crisis and prolonged financial pressure among property developers.

In addition, the case of Omicron is not over yet, the world is faced with the risk of war between Russia and Ukraine, which triggers a blow to the global economy namely supply chain disruption.

The war also resulted in limited supply of oil as a result of the boycott plan, increases in commodity and raw material prices, as well as global inflation which has the potential to cause stagflation.

“This has triggered a more challenging global economic outlook going forward,” Nico said.

Previously, top officials from the world’s monetary institutions revealed an estimate of a decline in the global economic outlook, indicating a sluggish world economy.

“The main trigger is the damage caused by the Russian invasion which has a domino effect on the flow of trade. The ongoing economic recovery must be hampered by the invasion,” he concluded.

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