TEMPO.CO, Jakarta - Analysts are projecting the year 2016 to bring improvement to the domestic and global economy, which could push the stock market index to hit a new record. In their outlook, Investa Saran Mandiri analysts are projecting the Jakarta Composite Index (JCI) to have a shot of moving between 5,800-6,000 bps next year.
"The economy could grow above 5 percent," Kiswoyo Adi Joe, one of Investa Saran Mandiri's analysts, said yesterday, December 20.
Kiswoyo estimated that if the index manages to go above 5,800, Indonesia will have a capital inflow of around Rp20 trillion to Rp30 trillion.
Indonesia's economy will benefit from a global positive sentiment following the Fed Rate hike. Internally, the economy and the stock market index will be supported by infrastructure projects ahead of the 2018 Asian Games, which Indonesia will host.
Kiswoyo predicts the government will allocate up to Rp100 trillion to build and renovate infrastructure facilities to support the Asian Games.
So far in 2015, the HCI had reached its highest record of 5,523 bps. Foreign funds flowing to the stock market is still at a net selling position of RpRp22.08 trillion according to data from the Indonesia Stock Exchange (IDX).
Meanwhile, the rupiah's outlook is not that bright albeit not too shabby. NH Korindo Securities predicted the rupiah to still move between Rp13,250 and Rp13,500 per US dollar. NH Korindo Securities chief researcher Reza Priyambada said that BI will try to help the rupiah reach a better position. "BI will continue to take actions, market interventions," he said.
ADITYA BUDIMAN
