Jakarta, TopBusiness — STAR Asset Management, in collaboration with Infovesta, is holding "Market Outlook 2024 and Investment Prospects in the Banking Sector Post-Election and Dividend Distribution Season".

This event was held at the Main Hall of the Indonesian Stock Exchange and attended by speakers from the Indonesian Stock Exchange, Bank Mandiri, Mandiri Sekuritas and Infovesta.

This event was opened by Jeffrey Hendrik, Director of the Indonesian Stock Exchange and Hanif Mantiq, CEO of STAR Asset Management. Jeffrey Hendrik emphasized the importance of adapting the Indonesian capital market to global trends and financial technology to increase transparency and efficiency.

Verdi Ikhwan, Head of Research Division of the Indonesian Stock Exchange, provided additional insight into the performance of the JCI and transaction activity recorded on the IDX, which showed an increase in market capitalization and reached an all time high of IDR 11,913 trillion on March 13 2024, recording a significant increase compared to last year. previously.

The average daily transaction value also increased by 4.9% (ytd) to IDR 11.3 trillion on April 16 2024. The growth of companies listed on the IDX is stable with a total of 924 companies in 2024, making Indonesia have the largest number of listed companies in ASEAN, which reflects strong capital market dynamics and promising economic prospects for investors.

Then, Bank Mandiri Chief Economist, Andry Asmoro, 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 sufficient liquidity for further expansion.

Additionally, 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 decrease 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," said Andry.

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%.

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.

Despite rising funding costs, many banks managed to adjust credit and risk management strategies to maximize profits, as evidenced by the decline in NPLs from 3.2% to 2.8%.

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.

"The average dividend yield of shares in the Infobank15 Index will reach 5.2% in 2024, with a stable P/E ratio of 13.5, showing an attractive valuation compared to other sectors," said Edbert.

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.

The presentation closed with STAR Infobank15 as an Index Mutual Fund that focuses on the banking sector by Susanto Chandra, Director of STAR Asset Management reintroducing STAR Infobank15.

It is hoped that this index mutual fund product will 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," said Susantor, in his statement, Tuesday (23/4/2024).

In his presentation, Susanto conveyed 4 main advantages of STAR Infobank15:

First, focus on the Banking Sector: OECD projections predict that Indonesia will become the fourth largest global economy in 2050, with the banking sector playing an important role in national economic growth.

Second, impressive historical performance: Bloomberg data shows that 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.

Fourth, effective risk management. In the last three years, STAR Infobank15 recorded an increase in returns of 25.8%, significantly exceeding the comparable index which only reached 6%. Despite recording high growth, the Infobank15 Index maintains controlled volatility with a beta value of 1.18, showing an extraordinary combination of high returns and risk stability.