Research

IHSG: The Political Chessboard

market-avatar

Algo Research Team

Market | Jun 25, 2023 | Views: 62

The content provided here is for informational purpose only. It is not an advise or recommendation. Please do your own research.
content-img

Key Summary:

  • The Presidential candidates
  • For now, downside risks: exit liquidity & corruption
  • Potential positive return starting 6 months before election

There are 234 days before the next Valentine's day, which coincides with the much anticipated 2024 Indonesian Presidential election set on the 14th of February. As financial market participants, we try to assess the political development as best and closely as possible to determine its implications to the financial markets.


Currently, political downside risks are greater than fundamental upside as the events that are unfolding are risk-off (corruption, exit liquidity) while the chessboard of power and politics remains fluid. However, it would likely be risk-on once everything is relatively more stable, when the 2024 Presidential candidates are officially registered, future policies are laid out and campaign funding is disbursed to the economy. Historically, IHSG recorded positive performance starting from 6 months prior to the election.

How was our research?

DISCLAIMER: Algo is an independent research platform and is not affiliated with any financial institution. We are not a licensed securities dealer, financial advisor, broker, or investment bank. The contents shared across our website, and social media platforms are intended for informational purposes only and reflect our views and opinions. It is not meant to be construed as financial advice and/or a recommendation to buy or sell an asset. Past performance does not guarantee future results. As a research platform, our contents are made to provide data-driven information and research-based articles, and should not be used as a basis for making any investment decisions. We strongly encourage you to conduct your own research and consult with a licensed financial advisor before making any investment decisions. Algo is not regulated by OJK (Otoritas Jasa Keuangan) and does not provide any investment services. We are not responsible for any financial decisions you make based on the information provided. All content is presented with the intent of informing only.