What we must remember is that there is an 'X' factor that can change conditions and projections, for example, the Fed's interest rates, high inflation in developed countries, and the war in UkraineJakarta (ANTARA) - Telkomsel's investment in technology company PT Gojek Tokopedia, or GoTo, is the right decision, profitable, and strategically valuable for the country, member of Commission VI of the House of Representatives (DRP), Evita Nursanty, has said.
"We have to support this investment decision," she said at the DPR VI Working Committee Meeting here on Wednesday.
The meeting discussed investments made by state-owned enterprises in digital businesses.
Two speakers attended the forum, namely head of research of MNC Sekuritas, Edwin Sebayang, and assistant professor of entrepreneurship and technology management interest group of the School of Business and Management (SBM) of Institut Teknologi Bandung (ITB), Dina Dellyana.
A number of members of the Working Committee, including Harris Turino, asked about the performance of GoTo's shares, its fair value, and future projections at the meeting. Turino questioned the valuation method used by Sebayang in preparing the forecast.
"If your forecast is correct, it means that GoTo’s market capitalization could reach more than Rp560 trillion. Does it make sense?" Turino asked.
Sebayang, who was grilled about the valuation, explained several methods used to value a company, starting from a comparison of price to gross transactions, the price-to-book ratio, to future business potential.
"Every securities firm has their own way of valuing companies. At MNC Sekuritas, we have calculated the fair price of GoTo's shares at Rp500. So, there is still a big upside going forward. This is a good investment," Sebayang said during the meeting.
Stock price movements, such as that of GoTo, are influenced by many factors, he explained. The target price of Rp500 may be achieved in the near future, at the end of the year, or it may not be achieved.
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"What we must remember is that there is an 'X' factor that can change conditions and projections, for example, the Fed's interest rates, high inflation in developed countries, and the war in Ukraine," he explained.
Furthermore, he opined that GoTo is an attractive company with a very clear business plan for profitability. Investors see the strengths of Gojek, Tokopedia, and GoPay as a compelling reason to invest in the company.
Sebayang appealed to people not to look for problems related to Telkomsel's investment in GoTo considering that foreign investors have also invested in GoTo.
He explained that there are four reasons why local startups, such as Gojek and Tokopedia, are being targeted by foreign investors.
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First, the huge potential of Indonesia's digital economy. Second, the rapid growth of startups with sustainable business potential. Moreover, the digital economy is believed to be the business of the future.
Third, the long-term potential to gain profits, both in terms of revenue and company valuation. This reflects on the experience of digital startups abroad.
Last, mutually beneficial synergies and collaboration opportunities, which can generate new sources of income by utilizing assets from investors and startups.
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Translator: Sugiharto P, Azis K
Editor: Fardah Assegaf
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