Low Interest Rates And AI Initiatives Support The Outlook For Technology Sector Stocks

TRIBUNNEWS/IRWAN RISMAWAN

Low Interest Rates And AI Initiatives Support The Outlook For Technology Sector Stocks

Monday, 03 Feb 2025

The potential for low interest rates may enhance the performance of technology sector issuers. The implementation of Artificial Intelligence (AI) technology initiatives also serves as a positive catalyst for technology stocks.

Senior Market Analyst at Mirae Asset Sekuritas Indonesia, Nafan Aji Gusta, stated that the trend of low interest rates in the future should benefit the technology sector. A low interest rate environment can stimulate the economy, thereby increasing domestic consumption.

Furthermore, reports on the performance of technology sector issuers have gradually indicated recovery, although they still reflect a negative trend. For instance, the net loss of PT GoTo Gojek Tokopedia Tbk (GOTO) was reduced by 29% year-on-year (YoY) to IDR 1.69 trillion in the third quarter of 2024.

During the period from January to September 2024, GOTO's net loss decreased by approximately 53% YoY to IDR 4.54 trillion.

"Additionally, Indonesia's economic growth could remain relatively stable at 5%, which will encourage domestic consumption and support the e-commerce sector," Nafan remarked when contacted by Kontan.co.id on Friday, January 31.

Nafan noted that the technology sector in Indonesia is primarily supported by e-commerce players or marketplaces. Key players in this industry include Tokopedia-Tiktok through GOTO, Shopee, Blibli (BELI), and Lazada.

Meanwhile, PT Bukalapak.com Tbk (BUKA) recently announced the closure of its marketplace services starting Tuesday, January 7, 2025. Bukalapak users have been given until Thursday, February 9, 2025, to complete their transactions.

In a written statement on its official blog, BUKA indicated that it would cease operations related to the sale of physical products such as electronics, gadgets, clothing, and more. This move is part of a transformation strategy to focus on virtual products such as prepaid credit and electricity tokens.