The Jakarta Composite Index (IHSG) closed down 0.77% at 5,989.56 in the first trading session last year. In fact, the index moved in the green zone and touched 6,055.97, the highest level in today's trading (30/12).

Sulking at the end of the first trading session, since the beginning of the year or year to date (ytd), IHSG still fell 4.92%.

Even though, most of capital market players assess the IHSG has the potential to advance in the next year. Wilson Sofan, President Director of PT Reliance Sekuritas Indonesia Tbk (RELI) explained, there are a number of sentiments that can determine the direction of the stock market.

First, there are liquidity in the financial market. This is mainly related to the Covid-19 aid stimulus in the United States (US) which is worth US $ 900 billion. This has made liquidity on global financial markets increasingly heavy and is expected to flow to emerging markets, including Indonesia.

As a result, investment by foreign investors in 2021 can remember foreign ownership in the market which currently only remains at 30%.

The second is the development of vaccines in 2021. Wilson said that this vaccination certainly raises investor optimism for business activities in Indonesia and is expected to revive the economy by the end of 2021.

Third, the application of the omnibus work copyright law (Ciptaker Law). In this Omnibus Law, there are a number of simplifications of laws to the establishment of a Sovereign Wealth Fund (SWF) or Indonesia Investment Authority to manage and optimize investment value in the long term.

"So that Indonesia becomes a good investment target for foreign investors," said Wilson in an online public expose, Wednesday (30/12).

Finally, the factor of restoring Indonesia's economic growth next year. Bank Indonesia (BI) is quite optimistic that Indonesia can emerge from the pandemic era after the vaccination program. Indonesia's gross domestic product (GDP) in 2021 is estimated at 4.5% -5.5% with the viewpoint of the third quarter of 2020 being a turning point (recovery).

As was known the IHSG had dropped and touched its lowest level in March 2020 due to the spread of the Covid-19 pandemic. Launching RTI, the IHSG was at the level of 3,911,716 which is the lowest level this year.

However, with these positive catalysts, Wilson believes the IHSG will reach the level of 6,808 by the end of 2021, where early next year is part of the recovery phase.

Sources : RTI Bussines