InfoSAWIT, JAKARTA – Sustainable funds keep increasing in demands significantly in the globe. These are positive ones. Data from Morningstar, Asset Under Management (AUM) sustainable funds reached more than US$ 3.1 trillion by June 2023, or escalated from US$ 2.8 trillion in FY 2022.
During the first half in 2023, AUM increased US$ 57 billion. What is interesting is that return investment from sustainable funds also surpassed traditional funds that reached 6,9% per year compared to 3,8% per year for traditional funds.
“It is a phenomenon globally. Foreign stock investors got more interest to invest in green development because sustainable funds would deliver profits of investment,” Director of BNI Sekuritas, Agung Prabowo said in a discussion with the theme "Seeing Green: Where Are All of Indonesia’s Green Economy Projects?" in BNI Investor Daily Summit 2023 last week.
Agung thought, green development transition would significantly require modal. When having legal regulation, supporting policy in green economic development, and effectively law enforcement, the companies would allocate their modal just like in the regulations.
“But if the funds derived from internal companies, such as, cash, green economic development would be slow. That is why the companies should consider the fund from stock market investors,” he said, as in the official statement to InfoSAWIT, Tuesday (31/10/2023).
Meanwhile in Indonesia, stock emission and obligation in association with green economy significantly developed. Since 2021 Bursa Efek Indonesia (IDX) noted hardly Rp 38 trillion of the three and there were high demands on them. For example, demands on Rp 5 trillion - BNI obligation reached Rp 21 trillion (oversubscription more than 4 times). Stock emission in Barito Renewables Energy got oversubscription 135,2 times.
“In Indonesia stock exchange, many Indonesian people demand on investments that focus on green economy. Besides, it would deliver profits. BNI Green Bond once hit premium selling price at 103% which means, secondary markets really wanted it. The high interests also happened to BREN that booked return 4.9x YTD since it was in initial public offering (IPO),” Agung said. (T2)