PT Mandiri Manajemen Investasi announced that they have tripled their cash holdings in the past two months. The company said that they are set to start buying consumer stocks upon the stabilization of the rupiah and once inflation rises.
Chief Investment Officer Priyo Santoso said, "A narrowing gap between the NDF and the onshore spot is an indication that pressure on the rupiah has eased, which will be a signal for foreign investors to start returning. Once inflation peaks, we see that as our entry point."
PT Mandiri Manajemen Investasi is the management unit of Indonesia's largest bank. The unit currently holds 10% to 15% of the banks IDR22 trillion or US$2.1 billion in cash. The fund plans to add shares to the company including PT Indofood CBP Sukses Makmur (INDF), PT Unilever Indonesia (UNVR) and PT Kalbe Farma once the rupiah stabilizes. Global funds pulled US$4.6 billion from Indonesian stocks since the Federal Reserve announcement of plans to reduce stimulus that fueled funds to emerging markets.
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