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The Prabowo-Gibran government has breathed new life into the Indonesian stock market. This is demonstrated by proactive policies that encourage sustainable development and strengthen the added value of natural resources.
Several sectors, such as primary consumption, property, and metal mining, show significant growth prospects, creating opportunities for investors to profit from the stock market.
The following are three main stock sectors that are predicted to have potential and promising growth in the Prabowo-Gibran government era:
The primary consumption sector is projected to grow rapidly during the Prabowo administration. Thanks to the “Makan Bergizi Gratis” program, which aimed to increase access to healthy food for the poor and increase demand for nutritious food products, opening up great opportunities for companies operating in the food and beverage sector.
According to data, public consumption in this sector grew by 5.6% in 2022 and is expected to increase further with this new policy. The increase in demand affects the company’s sales and profitability, attracting the interest of stock investors.
In addition to economic benefits, “Makan Bergizi Gratis” programs have a major social impact. Improved public health contributes to labor productivity, which, according to research conducted by the Central Statistics Agency (BPS), can increase GDP by up to 2% per year.
The property sector also shows bright prospects thanks to infrastructure development policies at the end of Jokowi's administration, which were continued in Prabowo's administration. Major projects such as the Trans Java Toll Road and the Jakarta-Bandung High-Speed Railway increase accessibility and property values in the surrounding areas.
The program “Satu Juta Rumah” is also designed to provide affordable housing for low-income communities, which is thought to further strengthen this sector’s appeal.
Data from the Ministry of Public Works and Public Housing shows that infrastructure development can increase property values by up to 15% in affected areas. Large property developers are strategically positioned to take advantage of this momentum.
The growth of the property sector benefits companies and investors and has a broad social impact. Increased housing development creates new jobs and improves people's welfare.
According to the World Bank report, property investment has a multiplier effect: Every 1% increase in investment can increase GDP by 0.3%. Therefore, the property sector plays a major role in national economic growth.
Lastly, the metal mining sector is another stock pillar that benefits from Prabowo's government policies.
Focusing on mineral downstreaming creates added value for mining products, strengthens global competitiveness, and opens up major investment opportunities.
This policy, including providing tax incentives and simplifying licensing, has attracted a 10% increase in foreign investment in 2022. Global demand for metals such as nickel, copper, and gold continues to grow positively.
Indonesia is the world’s leading nickel producer, benefiting from this trend. For example, nickel prices in the international market rose by 15% in 2022, boosting the incomes of major players in the sector.
Downstreaming is not only economically beneficial but also strengthens the fundamentals of mining companies, making their stocks more attractive. For example, INCO's stock rose by 25% after expanding its refining facilities.
In addition, sustainable mining practices encouraged by the government, such as post-mining land rehabilitation, increase the attractiveness of mining companies to environmentally conscious investors. Especially with the continued promotion of environmentally friendly living.
The economic impact of downstreaming extends to local communities, creating jobs and increasing regional income. The Ministry of Industry report shows that the construction of mineral processing facilities can create up to 500 new jobs per project.
The Prabowo administration has introduced many new policies that encourage sustainable development, creating huge investment opportunities in the primary consumption, property, and metal mining sectors. For investors, this is a strategic moment to capitalize on the growth of these leading sectors.
