Generating Alpha Through Investments in Indonesia and Beyond

There were a few important lessons that investors learned upon entering 2021 after a turbulent 2020. The current economy presents room for improvement, however, investors can look forward to changes that are about to come. With the increasing vaccine rollout, it indicates that the world is getting closer to seeing the end of the pandemic, and our collective health is on the mend. Consequently, this would allow for the market to bounce back, providing the space and opportunities for economies to recover. A real-world example of this would be China’s efficiency in handling the virus and flattening the curve in no time. Countries like China serve as role models for post-pandemic growth, but also create opportunities for investors trying to generate alpha during unprecedented times.

 

Monitoring Trends in The Economy

When it comes to making plans for business, investments, and overall financial goals, it all boils down to one overlapping aspect – monitoring the trends in the economy. Once Indonesia gains control of the pandemic, it will also be poised for a rebound in economic growth like China.

 

Goldman Sachs has predicted that China’s 2021 GDP will expand at a healthy clip of 7.5%. As for Indonesia, the vaccine rollout is acting as a positive catalyst in allowing the nation to be on track to economic recovery. From 2020, exports and imports have grown 6.47% and 5.27% respectively since China’s recovery began. This happened as China’s recovery catapulted the demand for Indonesian products. With China being Indonesia’s trading partner, a rebound in trade was observed – and Kimin Tanoto is ready to seize this opportunity.

The Gunung Capital Approach

Under the leadership of Kimin Tanoto, Gunung Capital’s (GC) investment approach, with its unique investment strategy and highly professional staff has allowed for the company to generate differentiated deals and opportunities from special market situations on top of offering flexible structuring of investments and mandates, including but not limited to the following:

Differentiated deal flow:
The team tirelessly works towards generating attractive risk/reward opportunities through depth and experience in core sectors and industries. 

Identify special situation opportunities:
Middle market companies that are undergoing complex financial, operations, or structural changes are identified. They are then brought to invest their smart capital with GC. 


Structuring investments:
A team of professionals strategically optimise the risk/reward profile of target companies, all whilst emphasising the protection of principal, and creating significant multiples of money. 


Flexible mandate:
GC designs flexibility in investment to have control or effective control of target companies and/or security, directly originating or driving secondary opportunities.


Corporate Governance:
Corporate governance exists to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. At GC, active leadership and governance work hand in hand to create value and improve operations. Its professionals have significant experience of providing strategic inputs to portfolio companies.

GC’s multi-dimensional growth strategy has played to its strengths to help the company grow into a bigger unit. The growth has allowed the organisation to provide a strong grip across the supply chain, gain competitive edge, derive better returns and exert greater influence in target industries through: 


Product Mix:
By investing in increasing product mix, it enables the company to cater to new markets and facilitate changing demand.

Integrated Operations:
To increase the profit margin, investments are made in integrated upstream and downstream production facilities. 

Modernisation & Expansion: To increase operational efficiency and minimise losses, investments are made in modernisation and expansion of production facilities. 


Increase Production:
Invest in capacity augmentation to capture growth opportunities in the regional market

Are you an investor looking to leverage opportunities in change? Speak to Kimin Tanoto’s team today

S'pore's Gunung Capital to invest $500m to decarbonise asset
credits to https://www.straitstimes.com/business/companies-markets/singapores-gunung-capital-to-invest-500-million-to-decarbonise-assets-invest-in-transformation-services