During a media briefing on Tuesday (December 17, 2024), Mustofa, the President Director of KISI Asset Management, emphasized Indonesia’s enduring appeal as an investment destination despite ongoing global challenges.
He noted the country’s remarkable economic resilience and the declining perception of investment risks, which continue to enhance its attractiveness to investors.
“Global challenges such as rising interest rates in the United States, inflationary pressures, and geopolitical tensions remain significant concerns. However, Indonesia’s robust economic fundamentals—characterized by stable economic growth, controlled inflation, and consistent government policies—present substantial opportunities for investors,” he stated during the briefing, as reported by Kompas.com.
One of the critical indicators, he explained, is the narrowing spread between the 10-year US Treasury yield and Indonesia’s 10-year Government Bonds. This trend signals a reduced perception of investment risk in Indonesia, thereby increasing the appeal of its domestic market.
In the same event, Arfan F. Karniody, Investment Director of KISI Asset Management, also highlighted the optimistic outlook for Indonesia’s capital market amidst global uncertainties.
He pointed out that prudent fiscal and monetary policies, combined with resilient growth, strengthen Indonesia’s competitiveness in attracting capital flows, making it a strategic and attractive destination for long-term investments.
Looking ahead, KISI Asset Management aims to bolster investor and partner confidence in Indonesia’s financial market prospects for 2025.
“With solid economic fundamentals and proactive policies, Indonesia is expected to attract long-term capital inflows and capitalize on domestic market opportunities,” he concluded.
KISI Asset Management Targets $277 Million by 2025
PT KISI Asset Management has set a target to increase its assets under management (AUM) to $277 million by 2025. Mustofa stated that the growth would primarily be driven by the company’s upcoming fixed-income mutual fund (RDPT), set to launch next year.
“If this plan materializes, I believe we’ll see an AUM increase of at least $61-92 million next year. Currently, our AUM stands at around $184 million, and we’re optimistic it will rise significantly to $246-277 million in 2025,” Mustofa explained, as reported by Liputan6.com.
He added that the product is still awaiting approval from the Financial Services Authority (OJK). The RDPT is projected to manage approximately $49 million in assets.
Mustofa also mentioned that KISI’s existing products, such as money market and fixed-income mutual funds, currently offer yields of around 7%. Since their launch in February, these products have accumulated $38 million in managed funds, which he considers a strong indication of market confidence.
“In less than a year, we’ve grown from zero to $38 million. This gives us confidence that this growth pattern will continue next year,” he added.
Established in 2019, KISI Asset Management is a prominent asset management firm with licenses for both investment management and advisory services. As part of Korea Investment Holdings, a leading non-bank financial institution in South Korea, KISI AM operates alongside KISI Securities in Indonesia.
The firm manages 14 mutual fund products, including money market, fixed income, balanced funds, equities, ETFs, and protected funds, with total AUM exceeding IDR 2.8 trillion as of November 19, 2024. KISI AM also collaborates with 19 distribution agents.
Sources: Kompas.com, Liputan6.com
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