Two Indonesia’s telecommunication giants − PT Indosat and PT Telkom Indonesia − are considered potential pillars for the infrastructure sector in the first quarter of 2024. Nafan Aji Gusta, Senior Investment Information at Mirae Asset Sekuritas Indonesia, views Telkom as a leader in the infrastructure sector, especially for short-term trading.
PT Telkom Indonesia, commonly known as Telkom, is the largest telecommunications services company in Indonesia. It is a state-owned enterprise (SOE) and provides a wide range of telecommunication services, including fixed-line telephony, mobile communication, internet, and data communication services.
Meanwhile, PT Indosat, commonly known as Indosat Ooredoo, is one of the major telecommunications operators in Indonesia. It is part of the Ooredoo Group, a telecommunications provider with a significant presence in the Middle East, North Africa, and Southeast Asia.
In addition to ISAT and TLKM, Nafan suggests that PT XL Axiata Tbk (EXCL) also supports the dynamics of the upcoming elections in Indonesia. Elections influence the market, especially for providers that offer large quotas used to disseminate news through platforms like WhatsApp.
“It is hoped that the 2024 elections will be safer and more peaceful than in 2019,” said Nafan on Wednesday. In previous years, such as 2004, 2009, and 2014, the Composite Stock Price Index (IHSG) tended to be bullish after the certainty of election winners. Looking back at 2019, the US-China trade war and the heated election dynamics caused fluctuations in the IHSG.
“However, in the coming year, it shouldn’t happen like that,” added Nafan. On the other hand, Isfhan Helmy, Head of Institutional Research at Sinarmas Sekuritas, projects that TLKM shares will be a driver for the IHSG in 2024.
He refers to the company’s shares as blue chips, having solid financial performance, growth, and a good reputation in the market. Isfhan also believes these stocks tend to have stable price movements in the market, making them attractive to investors.
Entering the political year, Isfhan believes that the development of political tensions will not have a significant impact on the Indonesian stock market. Investors will focus more on the performance of presidential and vice-presidential candidates. He emphasizes that regardless of what happens in the political landscape, the economy will continue to perform well.
“So, actually, in a political year, we shouldn’t worry too much about political tension. Focus on the issuers rather than the political situation,” concluded Isfhan.
