Recent disruptions has added pressures for businesses, but also opened doors for new opportunities. The two main disruptions happening in our economy are:
Technology: Technology is developing rapidly, changing the way businesses operate and reach their customers. Businesses need to continually find ways to offer more efficient and impactful products and services. Industries that have rapidly transformed by technology include the travel and eCommerce, where services have increasingly moved online.
The Covid-19 pandemic has sped up technology adoption
Source: BoFA Global Research
Sustainability: The rising awareness of sustainability has also led to another form of disruption. Governments are now seeking more sources of green energy, while corporations are encouraged to not just focus on making profit, but create long-term value by making a positive impact on the planet and society. In Indonesia, there is a slow but sure transition to zero carbon fuel and adoption of greener sources of energy. For example, we are seeing a rising demand for electric vehicles and batteries.
Find out more about Sustainability at Schroders
The government is seeking more sources of green energy domestically
Indonesia has started to move to cleaner energy, but the potential is still large.
Total potential 442 GW, compared to installed capacity of 9 GW (2,1%)
Source: Coordinating Ministry of Maritime and Investment
The Covid-19 pandemic has helped speed up technology adoption and prompted change in the behaviours of both businesses and consumers, pushing people to adopt technology earlier.
As the pandemic ensues, Indonesians are spending more time online, where they shop, work and interact, resulting in a surge in new Internet users with a higher likelihood of stickiness. Even after the lockdown, the number of hours spent online by Indonesians remained high, showing a clear change in behaviour.
The pandemic has pushed people to adopt the disruptions earlier
Sources: BoFA Research. As at 31 Dec 2020. For illustration purpose only.
Invest in the future, in companies that are driving the new economy. Disruption is happening in all market sectors, and it’s happening exponentially, heavily driven by technology.
Business that cannot adapt and survive as their way of business have been disrupted are known as the Disrupted, while those that manage to survive are known as Survivors.
In the disrupted environment, businesses must fight to survive. Only those that are willing to adapt to changes can survive and shape the new economy. These new economy businesses mainly fall under these categories - Disruptors, Enablers and Adaptors – and are the ones that we focus on.
INVESTMENT IN MUTUAL FUND CONTAIN RISKS, PRIOR TO INVESTING IN MUTUAL FUND, INVESTOR MUST READ AND UNDERSTAND THE FUND PROSPECTUS. PAST PERFORMANCE DOES NOT INDICATE FUTURE PERFORMANCE.
The views and opinions contained herein are those of the author(s) on this page and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can goes down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable, but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee that any forecasts or opinions will be realised. These views and opinions may change. PT Schroder Investment Management Indonesia, 30th Floor IDX Building Tower 1, Jl. Jend. Sudirman Kav 52-53, Jakarta 12190, Indonesia. PT Schroder Investment Management Indonesia is authorised as Investment Manager and regulated by Indonesian Financial Services Authority (OJK).