Investors Bet Early on Prabowo-Gibran Victory

The stock prices of several companies associated with Prabowo Subianto and Gibran Rakabuming Raka and the conglomerates backing them experienced a significant uptick in the week leading up to the 2024 Presidential Election. This surge reflects investors’ confidence in the victory of the presidential and vice-presidential candidate duo.

The significant increase in stock prices occurred in the shares of food and beverage company PT Panca Mitra Multiperdana (PMMP), which rose by 9.84 percent in a week and 55.88 percent throughout this year. Part of this company's shares is held by PT Harapan Bangsa Kita or GK Hebat, founded by Gibran's younger brother, Kaesang Pangarep, in 2019.

Foreign investors were particularly active in acquiring PMMP shares starting from January 18. Despite some selling activity from international stakeholders as intellectuals campaigned against Prabowo-Gibran, the upward trajectory remained largely intact. This contrasts starkly with the Composite Stock Price Index (IHSG), which has been grappling with challenges to sustain its upward momentum, currently undergoing a correction of 1.55 percent year to date. 

While the official announcement of Prabowo Gibran's victory awaits the results of the vote recount by the General Election Commission (KPU), scheduled from February 15 to March 20, various quick count results point to a clear lead for Prabowo-Gibran, garnering nearly 60 percent of the votes. This strong indication suggests that the Presidential Election will likely be decided in a single round.