Smooth Indonesian Elections Cause Conducive Investment Climate for IPOs

This optimistic view has not waned after the parliamentary election (held on 9 April 2014) showed a fragmented outcome, and thus a source for political uncertainty. Contrary to most projections, the PDI-P (Indonesia's main opposition party) was unable to post a clear victory, securing only around 19 to 20 percent of the popular vote based on the quick count results (the official result will be released on 9 May 2014). The PDI-P was expected to secure a huge win due to the party's support for highly popular Jakarta Governor Joko Widodo (Jokowi) as its presidential candidate. When on 14 March 2014 Jokowi announced that he would run for president, the news was well-received by the market. At the end of that day, Indonesia's benchmark stock index (Jakarta Composite Index) jumped 3.23 percent (attributed to the 'Jokowi effect'). However, on 10 April 2014 - one day after the 2014 parliamentary election - the Jakarta Composite Index immediately plummeted more than three percent as the market was not happy to see the election result (again we witnessed the 'Jokowi effect'). Now the market has absorbed both the positive and negative impact of the 'Jokowi effect' and is back in balance, it is time to look ahead. Market participants, particularly domestic ones, seem highly optimistic, evidenced by the three-day winning streak that emerged after the market had reacted to the legislative election result.

Per 15 April 2014, ten Indonesian companies conducted an IPO on the Indonesia Stock Exchange (Eka Sari Lorena Transport lists today). An indicator of the popularity of these IPOs is that they are all oversubscribed.

Last Update: 29 Mar 2021

Portfolio IPO 2014

Company	P: 29 Mar 2021	P: 28 Mar 2021	Gain/Loss	P/E ttm	Yield %	Gain/Loss YTD
Bank Panin SyariahPNBS	83	82	1.22%	N/A	0.00%	-4.60%
Asuransi Mitra Maparya Tbk.ASMI	925	930	-0.54%	N/A	0.00%	-6.57%
Bank Ina Perdana Tbk.BINA	1,560	1,550	0.65%	N/A	0.00%	64.21%
Capitol Nusantara Indonesia Tbk.CANI	186	186	0.00%	N/A	0.00%	22.37%
Tunas Alfin Tbk.TALF	310	258	20.16%	N/A	0.00%	13.97%
Bali Towerindo Sentra Tbk.BALI	700	690	1.45%	N/A	0.00%	-6.04%
Wijaya Karya BetonWTON	334	344	-2.91%	N/A	0.00%	-20.85%
Graha Layar PrimaBLTZ	4,600	4,650	-1.08%	N/A	0.00%	53.85%
Intermedia Capital Tbk.MDIA	63	66	-4.55%	N/A	0.00%	3.28%
Eka Sari Lorena TransportLRNA	180	185	-2.70%	N/A	0.00%	1.69%
Combined Total	8,941	8,941	0.00%			30.60%

Green colour indicates upward movement Red colour indicates downward movement P = price; E = earnings; D = dividend; Yield = D/P "N/A" indicates P/E < 0 (negative earnings) "-" indicates E,D,P or YTD is not available

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