Investors will leave if Prabowo wins: Deutsche Bank

Investors will leave if Prabowo wins: Deutsche Bank

The Jakarta Post, Jakarta | Business | Thu, June 12 2014, 5:50 PM

A recent survey by Deutsche Bank shows that the investors’ investment decisions will be significantly affected by the change in government.

The survey reveals that 74 percent of investors will invest if non-active Jakarta governor Joko “Jokowi” Widodo and his running mate Jusuf Kalla win the election, while only 6 percent would sell their shares. 

In contrast, the survey says that should the Prabowo Subianto-Hatta Rajasa pair win 56 percent of investors would offload their shares while only 13 percent would buy more shares.

The survey, which was conducted in May and June 2014, involved 70 investors.
“We note the approach of the Jokowi-Kalla pair’s ‘non-transactional’ coalition, compared to Prabowo-Hatta’s pragmatic compromise, is the most important distinguishing factor in the reform,” Deutsche Bank said in a release made available to The Jakarta Post on Thursday.

In addition, the bank’s R.O.C.K survey — the largest independent opinion poll comprising 3,300 respondents in 27 cities across the country — indicated support for the Jokowi-Kalla ticket was 50 percent while that for Prabowo and Hatta it was 41 percent.

The former Surakarta mayor’s team still led in 19 out of 27 cities it surveyed.

“Our base case view still calls for Jokowi-Kalla to win. Still, we note the fluidity of outcome and the scheduled five presidential debates may affect the undecided voters,” it said.

The bank aims to conduct two more surveys prior to the presidential election, which is slated for July 9.

Moreover, it said that independent political analysts suggested that the Jokowi-Kalla ticket would complement each other and had a stronger performance than the Prabowo-Hatta ticket during the first televised presidential candidate debate.

“Some observers have said that the first and the last debates would perhaps be the most influential and judging from media commentary, the first debate seems to have enhanced the Jokowi-Kalla ticket’s lead,” it continued. (nfo)


About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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