Investing in stocks can be a highly rewarding journey when done with the right information and strategies. While dividend-paying stocks are often seen as stable and reliable, non-dividend stocks also hold significant value for investors, particularly those who prioritize capital appreciation over regular income. In this essay, we will explore seven Indonesian stocks—ANTM (Aneka Tambang Tbk PT), INDY (Indika Energy Tbk), MDKA (Merdeka Copper Gold Tbk), NAYZ (PT. Hassana Boga Sejahtera Tbk.), PMMP (PT. Panca Mitra Multiperdana Tbk), SPRE (Soraya Berjaya Indonesia Tbk.), and TOBA (TBS Energi Utama Tbk PT)—all of which are known for their growth potential rather than dividend payouts. "Cik Atuh Lahhhh" ~ Understanding the Sundanese Expression in Indonesian Culture
1. ANTM (Aneka Tambang Tbk PT)
Aneka Tambang, commonly referred to as ANTM, is a well-known mining company in Indonesia. It specializes in the exploration, extraction, and processing of precious metals, with a focus on nickel and gold production. ANTM’s non-dividend-paying status does not detract from its appeal to investors, as the company offers substantial potential for capital growth due to its dominance in Indonesia’s mining industry.
The global demand for nickel, driven by the rise of electric vehicles (EVs) and battery technologies, makes ANTM an attractive stock. Nickel is a crucial component in lithium-ion batteries, and as the world shifts towards renewable energy and EVs, ANTM’s prospects continue to improve. Additionally, ANTM’s strategic partnerships with global players in the nickel supply chain enhance its future growth potential. As such, the stock is often favored by growth-focused investors who are willing to sacrifice dividends in exchange for substantial capital appreciation.
2. INDY (Indika Energy Tbk)
Indika Energy, or INDY, is another Indonesian giant, but in the energy sector. This company is primarily engaged in coal mining, energy services, and renewable energy development. While many energy companies offer dividends, INDY has chosen to focus on reinvesting its earnings to fund its ambitious projects in both traditional and renewable energy sectors.
Coal remains an essential energy source for Indonesia, and INDY’s role as one of the largest coal producers ensures its continued relevance. However, the company has also diversified its portfolio by investing in renewable energy, positioning itself for future growth as the world moves towards sustainability. This transition provides INDY with a dual advantage: it can capitalize on the demand for coal while preparing for a future where green energy dominates.
INDY’s choice not to pay dividends allows it to reinvest profits into expansion projects, technological innovations, and its growing renewable energy division. This strategy appeals to investors who are focused on long-term capital gains rather than immediate returns through dividends.
3. MDKA (Merdeka Copper Gold Tbk)
Merdeka Copper Gold (MDKA) is one of Indonesia’s leading mining companies, with a focus on gold, copper, and silver production. Gold has always been viewed as a safe haven asset, especially during periods of economic instability. MDKA’s operations in this sector provide it with a solid foundation for growth, making it an attractive stock for investors who are more interested in asset appreciation than dividend income.
One of the key factors that make MDKA stand out is its significant reserves of gold and copper. Copper, like nickel, plays an essential role in the global transition to green energy, particularly in the construction of electric infrastructure. As countries continue to invest in renewable energy and electrification, the demand for copper is expected to rise significantly, benefiting MDKA in the process.
MDKA’s decision to forgo dividends allows the company to reinvest its earnings into exploration and development, which enhances its long-term growth potential. Investors with a high tolerance for risk and a focus on long-term gains are often drawn to MDKA for its robust growth prospects in the mining sector.
4. NAYZ (PT. Hassana Boga Sejahtera Tbk.)
NAYZ is a relatively new player in the Indonesian stock market, specializing in the production of baby food and other infant nutrition products. As the demand for high-quality, nutritious baby food rises among health-conscious parents, NAYZ has quickly gained a foothold in this growing market.
What sets NAYZ apart is its commitment to providing organic and halal-certified products, which cater to a broad audience in Indonesia, a country with a significant Muslim population. The company’s focus on innovation and meeting consumer demands positions it well for future growth.
NAYZ’s decision not to pay dividends allows it to allocate resources toward product development and market expansion. As the company continues to grow its market share, investors who prioritize long-term capital gains over short-term income may find NAYZ an appealing investment.
5. PMMP (PT. Panca Mitra Multiperdana Tbk)
PMMP is a seafood processing company, specializing in the export of shrimp and other seafood products. With a growing global demand for high-quality seafood, PMMP has established itself as a key player in this industry. The company’s extensive supply chain, commitment to sustainability, and focus on quality control have helped it build a strong reputation in international markets.
Seafood exports are highly profitable, and PMMP’s revenue has been steadily increasing as it expands its reach into new markets. The company’s decision not to pay dividends reflects its strategy of reinvesting profits into expanding its processing facilities, improving its supply chain, and developing new product lines.
For investors looking for a stock with solid growth potential in the food export industry, PMMP offers a compelling option. The company’s focus on long-term growth rather than dividend payouts aligns with the interests of those who are more interested in capital appreciation.
6. SPRE (Soraya Berjaya Indonesia Tbk.)
SPRE is a relatively lesser-known stock in the Indonesian market, but it holds significant potential due to its involvement in the real estate and property development sectors. As Indonesia continues to urbanize, the demand for residential and commercial properties is on the rise, and companies like SPRE are poised to benefit from this trend.
Real estate is often seen as a stable investment, and while SPRE does not pay dividends, it offers substantial growth potential through the appreciation of its property holdings. The company has been actively involved in the development of high-end residential projects, commercial spaces, and mixed-use developments, all of which contribute to its long-term growth prospects.
SPRE’s focus on reinvesting profits into expanding its property portfolio rather than paying out dividends makes it an attractive option for investors who are looking for a stock with strong capital appreciation potential in the real estate sector.
7. TOBA (TBS Energi Utama Tbk PT)
TOBA is an energy company that has recently shifted its focus toward renewable energy projects, positioning itself as a leader in Indonesia’s green energy transition. While TOBA has historically been involved in coal mining and power generation, it has recognized the growing demand for renewable energy and has made significant investments in solar, wind, and hydropower projects.
The company’s transition to renewable energy is not only timely but also strategic, as the global push towards sustainability continues to gain momentum. TOBA’s renewable energy projects are expected to drive significant revenue growth in the coming years, making it an appealing stock for investors focused on environmental, social, and governance (ESG) criteria.
TOBA’s decision to forgo dividends reflects its commitment to reinvesting in renewable energy projects, which are capital-intensive but have high long-term returns. Investors who are looking for a stock with strong growth potential in the renewable energy sector will find TOBA to be a promising option.
While dividend-paying stocks offer steady income, non-dividend stocks like ANTM, INDY, MDKA, NAYZ, PMMP, SPRE, and TOBA can provide significant capital appreciation potential. These companies, operating in diverse sectors such as mining, energy, food processing, and real estate, have chosen to reinvest their profits to fuel growth and expansion rather than distributing dividends to shareholders. For investors with a long-term outlook and a focus on growth, these stocks offer attractive opportunities to build wealth through capital appreciation rather than dividend income.
The key to investing in non-dividend-paying stocks is understanding the company’s growth strategy, industry dynamics, and long-term potential. Each of the stocks mentioned in this essay presents a unique opportunity for investors seeking to capitalize on Indonesia’s economic growth and the global shift towards sustainability and technological advancement.
