James Sullivan, head of Asian financial research at JPMorgan Chase, stated on CNBC in February 2021 that although Indonesia has not yet contained the epidemic, JPMorgan Chase remains optimistic about the Indonesian market.
James pointed out that Southeast Asian countries such as Indonesia should not be compared with developed countries, especially in terms of population structure, Indonesia has a younger labor force.
According to data from CIA WorldFactbook in 2018, the median age of Indonesia’s population is 30, and more than half of the population is under 40.
James said that a very important difference is that "because they (the Indonesian population) are younger, they will have a much lower mortality rate than some more mature and developed economies."
According to James analysis, in countries like Indonesia, lockdown of cities and countries is not necessarily necessary.
James said that in addition to Indonesia's relatively young population, JPMorgan Chase has also seen "active efforts" to stimulate Indonesia's overall economic growth. Indonesia's manufacturing industry, and especially the export sector, has seen a "significant rebound".
In addition, the Indonesian government's efforts to promote national vaccination are another major reason for Indonesia's optimistic market prospects. Indonesia is expected to achieve herd immunity next year.
Indonesian Ministry of Health (Kemenkes) spokesperson Siti said on February 9 that Indonesian authorities expect to complete vaccination of 75% of Indonesia's population, or 181.5 million people, in March 2022.
Siti said: "We firmly believe that the new crown vaccination time will last up to 15 months, and even if the vaccine supply is ensured, the vaccination time will be accelerated to 12 months."
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