A local affiliate of Aberdeen Asset Management, a UK-based fund management firm, opened the doors of its Jakarta office on Tuesday, marking the firm’s official presence in Indonesia.
“Aberdeen has been investing in Indonesia since 1987, but now we are physically here,” said president director Sigit Wiryadi .
“As Indonesia’s output grows, there needs to be a diversification of funds. [Aberdeen] has access to global funds that can be channeled to Indonesia’s best-performing stocks.”
Singapore-based Aberdeen Asset Management Asia Limited, which is controlled by the UK fund manager, acquired 80 percent of local asset management firm NISP Asset Management from NISP Sekuritas, the securities arm of OCBC NISP Bank, in September.
Aberdeen then renamed NISP Asset Management as PT Aberdeen Asset Management. Having secured customers from NISP, PT Aberdeen Asset Management now manages up to $230 million of funds, according to Sigit.
He declined to describe the firm’s targets for next year, but noted that it aims to be among the country’s top ten asset management firms in five years.
The Aberdeen Group, which has 34 offices worldwide, including London and Singapore, managed up to $520 billion of funds as of October, over $100 billion of which is from Asia.
The group had invested a total of $4.2 billion worth of funds in Indonesian equities and fixed income securities by the end October.
Sigit, who previously served as NISP Asset Management’s president director, said the firm will continue to cater to both institutional and retail investors next year as it works to smooth out the merger.
Bharat Shah Joshi, an investment manager at PT Aberdeen Asset Management, said he’s still upbeat on Indonesia’s capital market despite a more challenging economic climate in the due to slower growth and less favorable global sentiment.
“I’m cautious on the near term, but bullish on the long term,” Joshi said, citing the government’s structural reforms promise as the basis for his optimism.
Consumer-related businesses such as consumer goods, telecommunications and banks, he said, appear to be among the most promising sectors for next year.