- Indonesia's macro game plan now seems more in synch with the potential obstacles the country faces. Perhaps more important, though, is that central bankers, government officials, and CEOs all now seem more committed to delivering on the "game plan" needed to elevate Indonesia into one of the elite destinations for investor capital.
- Within our ASEAN footprint, Indonesia has clearly emerged as one of the most attractive pure-plays on our view that global capital flows will increasingly migrate towards economies with large domestic consumption.
- Within the region, we see several industries in transition where investors should be buyers when prices become more realistic. These include E-commerce, health services, wellness, entertainment, nourishment, education, and even consumer financial services.
- While absolute rates are low in Indonesia relative to history, local debt actually still looks compelling.
- Consistent with this view on local debt, we are now more sanguine on emerging market currencies.
- Private Credit in Indonesia represents an opportunity, but deal sizes are still small and sourcing engines will likely be needed to boost capital deployment in this product area.
- Our research on Indonesian Public Equities suggests that we are at an inflection point.
- Similar to what we have seen in other big emerging markets, we believe that the opportunity for investors to use Private Equity to arbitrage the Public Equity markets is large and growing.
About KKRKKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com and on Twitter @KKR_Co. The views expressed herein are the personal views of Henry McVey of KKR and do not necessarily reflect the views of KKR. This information is not research and should not be treated as research. It does not represent valuation judgments with respect to any financial instrument, issuer, security or sector that may be described or referenced herein and does not represent a formal or official view of KKR. It is being provided merely to provide a framework to assist in the implementation of an investor's own analysis and an investor's own views on the topic discussed herein. There can be no assurance that an investment strategy will be successful. Historic market trends are not reliable indicators of actual future market behavior or future performance of any particular investment which may differ materially, and should not be relied upon as such. This information should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or to adopt any investment strategy. References to a target portfolio and allocations are hypothetical allocation of assets and not reflect an actual portfolio. The views expressed herein and discussion of any target portfolio or allocations may not be reflected in the strategies and products that KKR offers or invests, including strategies and products to which Mr. McVey may provide investment advice to or on behalf of KKR. It should not be assumed that Mr. McVey has made or will make investment recommendations in the future that are consistent with the views expressed herein, or use any or all of the techniques or methods of analysis described herein in managing client or proprietary accounts. This release may contain projections or other forward-looking statements. Neither KKR nor Mr. McVey assumes any duty to update such statements.