Empowering Indonesia
Niche AM’s mission is to discover an investment theme before it becomes one (and therefore before it becomes expensive and overcrowded).
Niche AM believes Indonesia could become one of these “super themes” in the years to come, perhaps the emerging market darling of the next 5 years, replicating the performances of China in the 2000s and India in recent years.
The country certainly has all the potential to become such a theme, and it also has a number of possible catalysts on the horizon.
Infrastructure investment is one of these key catalysts. Not only from Government, but also from foreign investors, as Indonesia capitalises on growing political and economic stability, and as it benefits from its key geopolitical position: standing right in the middle of the geopolitical fault line between China and the West could help Indonesia attract FDI at increasing rates from both sides.
This is not wishful thinking.
Only last week Microsoft has announced an investment in Indonesia’s digital (cloud and AI) infrastructure, which -albeit not sizeable relative to the country’s GDP- is yet another sign of Indonesia’s benign FDI outlook (see here).
Microsoft’s digital infrastructure investment follows last November’s signature between Indonesia and the US Government of a new partnership to explore supply chain opportunities in the strategic semiconductor sector (see this), and builds on the company’s “Empower Indonesia” initiative, which includes plans to roll out Microsoft’s first data-center region in the country (see here).
With the highest number of micro and small enterprises per capita in the world (and a geographic and logistical dispersion which is probably also unique in the world) digitalisation should massively boost productivity across the archipelago.
According to research by Kearney, AI alone could contribute nearly US$1 trillion to Southeast Asia’s GDP by 2030, of which Indonesia is poised to capture more than US$365 billion.
See here for details on our investment case on Indonesia and our NJ Indonesian fund.
This is a marketing communication intended exclusively for institutional investors. Refer to the Fund Prospectus & KIDs before making any investment decision.
For any questions email us on: info@nicheam.com
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