Warta Ekonomi, Jakarta – In 2024 there will be many dynamics, starting from domestic politics, dividend season, to international geopolitical conflicts. Each of these dynamics can influence the investment climate in the domestic capital market, including the banking sector. So, what are the investment prospects this year?

Head of Research Division of the Indonesian Stock Exchange, Verdi Ikhwan, said that the stable growth of listed companies on the IDX with a total of 924 companies in 2024 means that Indonesia has the largest number of listed companies in ASEAN.

"This reflects the strong capital market dynamics and promising economic prospects for investors," he said in the "Market Outlook 2024 and Investment Prospects in the Banking Sector Post-Election and Dividend Distribution Season" held by STAR AM together with Infovesta at the Indonesia Stock Exchange, Monday, April 22, 2024.

Bank Mandiri Chief Economist, Andry Asmoro, highlighted stable GDP growth of 5.1% in the last year. He emphasized the significant role of the banking sector with annual credit growth reaching 9% and the credit to deposit ratio (LDR) remaining at 92%, indicating adequate liquidity for further expansion. In addition, the increase in net profit in the banking sector by 15% from the previous year strengthens the role of this sector in supporting the national economy.

In continuity with this analysis, it was stated that banking sector credit rose by 8% last year, while deposits grew by 6%. The reduction in the non-performing loan ratio from 2.9% to 2.5% also shows an improvement in asset quality, strengthening the function of the banking sector as the main pillar of the economy and capital markets in Indonesia.

Parto Kawito, Director of Infovesta, provided conclusions about the resilience of the banking sector amidst global economic challenges. In his presentation, he highlighted that credit growth in the banking sector had increased by 8% over the last year, while deposit growth was stable at 6%.non-performing loan In addition, asset quality improved with a decrease in the non-performing loan (NPL) ratio from 2.9% to 2.5%, which shows an improvement in asset quality in the banking sector. These markers emphasize the important role of the banking sector in driving the Indonesian economy and capital market dynamics.

Kresna Hutabarat, Deputy Head of the Equity Research and Strategy Division at Mandiri Sekuritas, provided in-depth insight into the impact of the latest monetary policy on the banking sector. With Bank Indonesia's increase in interest rates by 50 basis points to 5.25%, funding costs increased, but this also pushed up the net interest margin from 4.3% to 4.8% for efficient banks.

On the other hand, Edbert Suryajaya, Director of Infovesta revealed that the Infobank15 Index, which focuses on selected banking stocks, recorded an impressive increase of 12% in the last year, indicating the resilience and growth potential of this sector.

Effective risk management, he said, is reflected in the relatively low beta value of 0.9, indicating that the shares in this index are more stable and less affected by sharp market fluctuations, making it an attractive investment option for those who prioritize investment security and growth. long-term.

Still on the same occasion, the Director of STAR Asset Management, Susanto Chandra, said that STAR Infobank15 is an index mutual fund product which is expected to make it easier for investors to access opportunities in the banking sector with controlled risk. It is hoped that this product will be an attractive alternative investment method for investors who have an interest in banking sector shares that have strong fundamental performance and high liquidity.

He explained that there are four advantages of STAR Infobank15, one of which is that the mutual fund focuses on the banking sector, where the OECD predicts that Indonesia will become the fourth largest global economy by 2050, with the banking sector playing an important role in national economic growth. Then, these mutual funds recorded impressive historical performance, namely in the last decade, STAR Infobank15 recorded an average annual increase of 11.5%, surpassing indices such as LQ45, IHSG, and Sri-Kehati which ranged from 2.3% to 5.8 %.

Third, attractive dividends. In the last five years, the Infobank15 Index shows an upward trend in dividend yields, reaching an estimated 4.07% in 2024, with an average payout ratio of 45.8%, indicating the prospect of attractive returns for long-term investors and an increase in NAV value through sustainable dividends.

“Despite recording high growth, the Infobank15 Index maintained controlled volatility with a beta value of 1.18, showing an extraordinary combination of high returns and risk stability.