The Crypto and Stock Markets are currently experiencing extreme conditions. The fall in market prices or bear market is due to global economic uncertainty. For example, the Covid-19 Pandemic to the Russian Attack on Ukraine have become the main factors that have contributed greatly to the increase in food and oil prices around the world.
The aftermath of uncertainty due to this war also caused the crypto asset Terra (LUNA) to plummet. Many investors who invest their assets in Terra withdraw their money when the price of the currency begins to fall. As a result, the price of Terra dropped even more and ended up being frozen in trading on the blockchain.
The latest case of the Celsius (CEL) crypto which is also starting to be abandoned by its investors. The price of the CEL cryptocurrency plunged by more than 70%. In fact, this made Celsius stop all their cryptocurrency withdrawal services.
The central bank of the United States, The Federal Reserve (The Fed), has even raised interest rates three times during the first half of 2022 and is expected to continue to increase. This interest increase is the largest in 30 years to cool the economy and control inflation.
Interestingly, Indonesia is the country with the largest economy in Southeast Asia, a diverse archaeological nation with more than 300 ethnic groups and has achieved remarkable economic growth since it emerged from the Asian financial crisis in the late 1990s. With its economy impacted by the pandemic, Indonesia went from upper-middle income to lower-middle income status as of July 2021. The Asian Development Outlook (ADO) 2022 says Indonesia’s consumer spending and manufacturing activity have been consistently rising due to the pickup in incomes, jobs, and confidence. The decision to harness digitalization brings both positive and negative influence even to the economic sector, especially in the investment field, that are benefiting from expanding demand, business climate, and unfolding varieties of investing.
As countries around the world come to terms with ongoing economic recovery from the pandemic. Throughout the year, Indonesia currency posted a significant weakening of 271 points or a correction of 1.86% against the US Dollar and became the biggest weekly correction since June 2020 and the continuity downfall of Composite Stock Price Index (ind. Indeks Harga Saham Gabungan/IHSG) to 1.6% (CNBC, 2022). Inflation, which averaged 1.6% last year, has begun to rise to 4.3% in June 2022, primarily caused by the soaring of energy prices in last May. Inflation should ease to 3.0% in the third quarter of 2022 as commodity prices increase abate. Higher prices for Indonesia’s commodity exports, however, should offset lower export volumes, keep a balanced current account and produce some revenue gains.
The Ministry of Investment/Investment Coordinating Agency (BKPM) publishes data on the realization of investment realization in the first Quarter (January – March period) for 2022, which is IDR 282.4 trillion, 28.5% higher than the same period in 2021. The achievements of the first quarter of 2022 also increased by 16.9% compared to the fourth quarter of 2021. As a reflection of economic equality in Indonesia, investment growth outside Java is currently quite stable and continues to increase significantly. In the first quarter of 2022, investment realization outside Java was IDR 148.7 trillion, an increase of 16.6% from the fourth quarter of 2021, which was IDR 127.5 trillion (BPKM, 2022).
While the widening socio-economic gaps and means to fight the inflation during the health pandemic continue to grow, it’s time to consider how we have the potential to benefit and support one another through the right kinds of investment. Impact investors connect the pursuit of risk-adjusted returns with the delivery of positive real-world outcomes through impact investing. With more investors recognized to generate a positive social and environmental impact alongside attractive and stable long-term financial returns, impact investing has been proved to be an effective hedge against volatility and downside risk (Hossain, 2021).
Nonetheless, constructing the index for the investment proved to be challenging. With the portfolio of investment in general going through 30% growth per month, Bali Investment Club (BIC) can help those who look for greater stability and is delighted to see more private capital flow toward solving pressing social needs in Indonesia such as poverty and waste management. By investing in one of many wonderful pipeline projects namely “BukaPO” and “Rekosistem”, it will also give investors rights to future deals along with many other perks. There’s no course of action to control the flow of stocks or crypto along BIC great ecosystem, your investment will also be used to support and mentors the entrepreneurs as it helps the company grows and profit even more, building a positive prominent portfolio and creating the win-win situations to reach more than meets the eye.