The State Budget Draft (RAPBN) 2022 is about to be finalized. So what does it has anything to do with the stock market?

Perhaps one direct effect in the future, should this budget be approved, is on the Construction & Infrastructure sector. Since the pandemic, the stock index has been underperforming.

In the RAPBN 2022, the budget for infrastructure development amounts to IDR 384.8 trillion (USD 26.7 billion), consistent with previous years’ budgets.

Like other countries (e.g. the USA with their USD 1 trillion Infrastructure bill), one way to push for economic recovery post pandemic is through the infrastructure spending.

Some companies that should benefit from this infrastructure (toll roads, water, airports, gas pipeline, communication tower projects, etc) spending: