Analyst Advises to Make Investment Before Jokowi's Inauguration  

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Minggu, 5 Oktober 2014 09:56 WIB

Jokowi menyerahkan surat pengunduran diri ke ketua DPRD Prasetiyo Edi di ruang rapat paripurna DPRD DKI Jakarta, 2 Oktober 2014. TEMPO/Dasril Roszandi

TEMPO.CO, Jakarta - Lucky Bayu Purnomo, a senior analyst from LBP Enterprises, advised investors to make investment within five to 10 days before the inauguration of President elect Joko Widodo (Jokowi) on October 20, 2014.


The advice is not without grounds as in the investment process in the market, he said, there are three phrases within it.


First is the accumulation phase; that is when investors accumulate investment instruments such as obligation, commodities and many others.


"This phrase generally happens during consolidation period. Jokowi might be understandably confident but the reality is that the House of Representatives (DPR) is dominated by his political opponents," Lucky said on Saturday, October 4, 2014.


According to Lucky, with the election of Golkar Party Politician Setya Novanto as the Speaker of the DPR, the Indonesian Democratic Party of Struggle (PDI-P) cannot become the motor in the DPR.


The second phrase is participation phrase; that is when the market starts making investment barring partially.


The market will certainly respond positively to Jokowi’s inauguration, but it will still wait for the announcement of his cabinet until October 25, 2014. Therefore, market players are advised to make investment on 5 to 10 days before his inauguration.


The last phase is distribution; that is when the market can already assess performance of the president and his cabinet.


"[The market will asses] whether or not the qualification of his ministers are up to the challenges to be faced. At this phase, there will usually be correction,” Lucky added.



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