THE IRREVERSIBLE TREND
Visioning Toward A Full-Fledged Market Reformation
After the vigorous battle with the COVID-19 pandemic, we still have to conquer many hurdles approaching its second year. The World Bank projected that global growth would accelerate by 5.6% in 2021. Following a 3.5% deep contraction in 2020, global economic recovery has gained momentum, despite uneven signs of progress. As several major economies have rallied positively due to their vast vaccination campaign and stimulus distributions, some emerging economies still face unequal healthcare access, making the vaccine-led recovery yet to be realized.
With Indonesia still being Asia's virus epicenter as of July and overshadowed by the spillover from major economies, the government believes that its recovery would encounter a positive, strong, and sustainable outlook. This circumstance allows other measures such as investment, trade, and consumption to drive the recovery. With various government accommodative actions from the monetary and fiscal authorities, also the structural reform to assist long-term contingencies, concerns emerge as to what's next and how Indonesia could keep up with the global trend.
Nevertheless, the COVID-19 unprecedented shock could be a game-changer. This catastrophe leaves the world to a restart. High-tech instruments, particularly the internet, have found their way into the consumer as our dependence on technology intensified. Support from millennials and the Gen-X significant number in the nation's population would also expand the demand for rapid technology tools and usage, marking the start of a new economic era in which technology and digital lifestyle have altered the traditional manner of doing things.
This integration leads to ample growth in the tech sector. IDX Technology exhibits a performance increase of more than 400% per mid-2021, also backed by a growing number of future tech-startup IPOs. The digital shift also forces traditional businesses to transition, including the banking sector. Conventional banks have participated in selling digital banking services to keep up with the trend, noting that digital banks have also developed a robust digital ecosystem. This feature allows digital banks to penetrate countless aspects within their boundless ecosystem.
These irreversible trends put the upcoming years of Indonesia's economy and the capital market industry in question. How can Indonesia navigate amidst the uncertainty of economic recovery? How do we adapt to the massive transformations following the immense restart? How would the current growing technology’s presence affect the future of Indonesia's capital market dynamics? Will it be the major forefront of investment for years to come? And finally, is technology fully changing the forms of business and investing, or can it go in parallel with conventional ways?
These questions represent the backdrop of our theme: to recognize, foresee, and conceive to get a head start on how the new economic era will be the future with countless possibilities going forward.