In connection with the above plan, the Investment Manager hereby informs the public of the following:

1. A condition has occurred whereby the total Net Asset Value (NAV) of the SIMPAN AMANAH SHARIA FUND has fallen below IDR 10,000,000,000 (ten billion Rupiah), commencing on 29 April 2026. In relation to this condition, the Investment Manager and PT Bank CIMB Niaga Tbk, as the Custodian Bank of the SIMPAN AMANAH SHARIA FUND, have agreed to dissolve the SIMPAN AMANAH SHARIA FUND without waiting for the expiration of the mandatory dissolution period applicable where the total Net Asset Value remains below IDR 10,000,000,000 (ten billion Rupiah) for 120 (one hundred twenty) consecutive trading days, as stipulated under Article 45 letter (d) of Financial Services Authority Regulation No. 23/POJK.04/2016 dated 13 June 2016 concerning Mutual Funds in the Form of Collective Investment Contracts, as amended by Financial Services Authority Regulation No. 2/POJK.04/2020 dated 8 January 2020 and Financial Services Authority Regulation No. 4 of 2023 dated 30 March 2023, as well as Article 26.1(v) of the Collective Investment Contract of the SIMPAN AMANAH SHARIA FUND, which provides that the SIMPAN AMANAH SHARIA FUND must be dissolved where the parties have agreed to dissolve the fund, as set forth in the Agreement on the Dissolution of the SIMPAN AMANAH SHARIA FUND dated 2 July 2026.

2. The Investment Manager notified the Financial Services Authority (OJK) of the planned dissolution of the SIMPAN AMANAH SHARIA FUND on 2 July 2026.

3. The Investment Manager has instructed the Custodian Bank to cease the calculation of the Net Asset Value (NAV) of the SIMPAN AMANAH SHARIA FUND effective 2 July 2026.

4. The dissolution and the commencement of the liquidation process will take effect upon the execution of the deed of dissolution of the SIMPAN AMANAH SHARIA FUND before a notary.

This announcement is made for the information of the public.

Jakarta, 2 July 2026

PT Simpan Asset Management

Licensed and supervised by the Financial Services Authority (OJK).

PENGUMUMAN RENCANA PEMBUBARAN REKSA DANA SIMPAN AMANAH SYARIAH FUND

PT Simpan Asset Management selaku Manajer Investasi (“Manajer Investasi”) REKSA DANA SIMPAN AMANAH SYARIAH FUND (selanjutnya disebut “SIMPAN AMANAH SYARIAH FUND”) dengan ini mengumumkan rencana pembubaran SIMPAN AMANAH SYARIAH FUND.

Berkaitan dengan rencana tersebut di atas, dengan ini Manajer Investasi menyampaikan hal-hal sebagai berikut:

1. Bahwa telah terjadi kondisi di mana total Nilai Aktiva Bersih SIMPAN AMANAH SYARIAH FUND kurang dari Rp10.000.000.000,- (sepuluh miliar Rupiah) yang dimulai sejak tanggal 29 April 2026 dan bahwa atas kondisi tersebut Manajer Investasi dan PT Bank CIMB Niaga Tbk selaku Bank Kustodian SIMPAN AMANAH SYARIAH FUND telah sepakat untuk melakukan pembubaran SIMPAN AMANAH SYARIAH FUND tanpa menunggu berakhirnya jangka waktu kewajiban membubarkan SIMPAN AMANAH SYARIAH FUND apabila total Nilai Aktiva Bersih kurang dari Rp10.000.000.000,- (sepuluh miliar Rupiah) selama 120 (seratus dua puluh) hari bursa berturut-turut, sebagaimana diatur dalam Pasal 45 huruf d Peraturan Otoritas Jasa Keuangan Nomor 23/POJK.04/2016 tanggal 13 Juni 2016 tentang Reksa Dana Berbentuk Kontrak Investasi Kolektif jis. Peraturan Otoritas Jasa Keuangan Nomor 2/POJK.04/2020 tanggal 8 Januari 2020 tentang Perubahan atas Peraturan Otoritas Jasa Keuangan Nomor 23/POJK.04/2016 tentang Reksa Dana Berbentuk Kontrak Investasi Kolektif dan Peraturan Otoritas Jasa Keuangan Nomor 4 Tahun 2023 tanggal 30 Maret 2023 tentang Perubahan Kedua Atas Peraturan Otoritas Jasa Keuangan Nomor 23/POJK.04/2016 tentang Reksa Dana Berbentuk Kontrak Investasi Kolektif dan Pasal 26.1. butir (v) Kontrak Investasi Kolektif SIMPAN AMANAH SYARIAH FUND, yang menyatakan bahwa SIMPAN AMANAH SYARIAH FUND wajib dibubarkan apabila Para Pihak telah sepakat untuk melakukan pembubaran SIMPAN AMANAH SYARIAH FUND, sebagaimana termaktub dalam Kesepakatan Pembubaran SIMPAN AMANAH SYARIAH FUND tertanggal 2 Juli 2026.

2. Manajer Investasi telah memberitahukan rencana pembubaran SIMPAN AMANAH SYARIAH FUND kepada Otoritas Jasa Keuangan pada tanggal 2 Juli 2026.

3. Manajer Investasi telah menginstruksikan Bank Kustodian untuk menghentikan perhitungan Nilai Aktiva Bersih SIMPAN AMANAH SYARIAH FUND sejak tanggal 2 Juli 2026.

4. Pembubaran dan dimulainya proses likuidasi akan dilakukan dengan ditandatanganinya akta pembubaran SIMPAN AMANAH SYARIAH FUND di hadapan notaris.

Demikian pengumuman ini dibuat untuk dapat diketahui oleh publik.

Jakarta, 2 Juli 2026

PT Simpan Asset Management

berizin dan diawasi oleh Otoritas Jasa Keuangan

With the new Simpan Dollar Bond Fund, you can now hold both rupiah and dollar products in one place. Built and run by the same team, with the same close communication and full visibility usually reserved for private wealth clients. Though a new product is only useful once you know how much of it to hold. So here’s the part that matters more than the launch: how to decide the right amount of dollars for your portfolio.

There’s no exact right number, only a right starting point for your life. Anyone who quotes you one figure without asking about you is guessing in a nicer suit.

So here’s how a private wealth manager actually thinks about effective portfolio diversification:

Your life in rupiah. Your future, hedged in dollars. There isn’t one right number. There’s a right number for you, and it follows from how global your life already is.

Your number comes from one thing: how much of your life and your future is tied to the world beyond Indonesia. The more of it is, the more of your money should be in dollars. Find the tier that sounds like your life.

Discover the allocation that fits you

The thread through all three: the more of your life and wealth is tied to the world, the more of your money should be too. A rupiah life needs a little insurance, called diversification. A global life needs a reserve. A future that’s largely abroad needs real weight in dollars.

How to know if the allocation you chose works?

Picking a number is a start. Then the question becomes whether the number you picked fits your life, and there’s a way to check:

The test isn’t whether your portfolio still shows 20%, for example. It’s whether your dollar money is doing its job: covering your dollar spending without ever forcing you to convert rupiah at a bad moment. Watch for two signals over a year:

1. You keep topping up dollars from rupiah to fund your spending. If you set 20% for travel and imported goods but find yourself repeatedly selling rupiah to cover those costs, especially when the rate is bad, your share was too low. Your real dollar life is bigger than your dollar pot. Nudge the target up.

2. It covers everything and you never think about the exchange rate. That’s the target sitting right. You spend from dollars when life is in dollars, from rupiah when it’s in rupiah, and the day’s rate never dictates a decision. Leave it alone.

A good number is one you stop noticing. If you’re thinking about the exchange rate often, the number is wrong, not the market.

Ready to build yours? Move a slice into the Simpan Dollar Bond Fund and you’ve turned a single-currency portfolio into a globally balanced one, achieving true portfolio diversification with the same care once only reserved for private-bank clients. Start with the allocation setup that fits your life today, and adjust as your life grows.

Explore Dollar Bond Fund now.

There’s no exact right number, only a right starting point for your life. Anyone who quotes you one figure without asking about you is guessing in a nicer suit.

So here’s how a private wealth manager actually thinks about effective portfolio diversification:

Your life in rupiah. Your future, hedged in dollars. There isn’t one right number. There’s a right number for you, and it follows from how global your life already is.

Your number comes from one thing: how much of your life and your future is tied to the world beyond Indonesia. The more of it is, the more of your money should be in dollars. Find the tier that sounds like your life.

Discover the allocation that fits you

The thread through all three: the more of your life and wealth is tied to the world, the more of your money should be too. A rupiah life needs a little insurance, called diversification. A global life needs a reserve. A future that’s largely abroad needs real weight in dollars.

How to know if the allocation you chose works?

Picking a number is a start. Then the question becomes whether the number you picked fits your life, and there’s a way to check:.

The test isn’t whether your portfolio still shows 20%, for example. It’s whether your dollar money is doing its job: covering your dollar spending without ever forcing you to convert rupiah at a bad moment. Watch for two signals over a year:

1. You keep topping up dollars from rupiah to fund your spending. If you set 20% for travel and imported goods but find yourself repeatedly selling rupiah to cover those costs, especially when the rate is bad, your share was too low. Your real dollar life is bigger than your dollar pot. Nudge the target up.

2. It covers everything and you never think about the exchange rate. That’s the target sitting right. You spend from dollars when life is in dollars, from rupiah when it’s in rupiah, and the day’s rate never dictates a decision. Leave it alone.

A good number is one you stop noticing. If you’re thinking about the exchange rate often, the number is wrong, not the market.

Ready to build yours? Move a slice into the Simpan Dollar Bond Fund and you’ve turned a single-currency portfolio into a globally balanced one, achieving true portfolio diversification with the same care once only reserved for private-bank clients. Start with the allocation setup that fits your life today, and adjust as your life grows.

Download Simpan now

This was, in our view, the expected outcome. Indonesian authorities took meaningful steps to address MSCI’s concerns around market accessibility — notably through improvements in shareholder granularity disclosure and the introduction of a high concentration list. These weren’t cosmetic changes; they were the specific reforms MSCI had flagged, and they appear to have been sufficient to prevent an immediate downgrade.

That said, the MSCI statement makes clear that announcements alone aren’t enough. What matters now is consistent implementation and sustained effect. MSCI will continue to assess the scope, consistency, and effectiveness of these measures — and if sufficient progress isn’t evident by the November 2026 Index Review, reclassification to Frontier Markets remains on the table.

What the Market Said

The JCI closed at approximately Rp 5,900 on June 24, down 3.37% on the day, with turnover of around Rp 13 trillion. Month-to-date, the index is down 2.82%, with foreign investors recording net outflows of Rp 20.6 trillion over the period.

The reaction reflects two things at once: the relief of avoiding an immediate downgrade was already partially priced in, while the caveats around implementation and the November deadline introduced uncertainty the market is still absorbing. This isn’t a collapse in fundamentals. It’s a market reacting to an ambiguous outcome.

Indonesia’s economy expanded at 5.61% in Q1 2026 — a strong headline number, but one driven largely by government spending rather than private consumption or investment. Growth of that composition is less self-sustaining, and as fiscal consolidation progresses, the tailwind from public expenditure will likely moderate. We’re bullish on the valuation; we’re also clear-eyed about the quality of the growth underpinning it. We continue to favour staying invested and selectively adding on weakness, with that in mind.

How We’re Thinking About This

Equities

The JCI is now trading at a forward P/E of 14.23x, roughly two standard deviations below its historical mean — valuation levels last seen during COVID. At these prices, we remain bullish. Historically, entry points at these levels have rewarded patient investors.

Fixed Income

Indonesia’s 10-year government bond yield is currently at 7.21%. At this level, fixed income presents a compelling entry point for investors already holding rupiah assets. We continue to recommend increasing exposure and extending duration where appropriate.

Currency

The rupiah has weakened to approximately Rp 18,100 against the US dollar, and the pass-through to businesses and households is real. There are early encouraging signs — the rupiah had recovered to around Rp 17,800 in recent sessions — but we remain cautious. The durability of any IDR recovery hinges on fiscal credibility, and we’re watching government spending commitments closely. Follow-through on APBN consolidation remains the key signal for sustained stabilisation.

Our Overall Position: Stay Invested

These past few weeks have been testing. The index has reached COVID-era valuations, the currency has weakened to multi-year lows, and the MSCI review has extended the uncertainty to November. None of that is trivial.

But at current valuations, the risk premium on Indonesian assets looks attractive. The reforms that kept Indonesia in the EM index are real, even if their sustained implementation remains the open question. Historically, the periods when the story is most complicated and the numbers look worst have tended to be precisely the moments worth holding through. We’ll continue to monitor developments ahead of the November window and update you as things evolve.

How to Position Through This

For investors staying invested in Indonesian markets: Actively Managed Portfolio (AMP)

Indonesia’s market can be illiquid at times, which means foreign flows tend to have an outsized impact on prices, creating sharp moves that can feel disconnected from fundamentals. AMP was built for exactly this environment — adjusting your allocation between equities, bonds, and money market instruments each month based on market conditions. At current levels, where both equities and fixed income present compelling entry points, we think this is a good time to enter or add. AMP provides the structure to do so in a disciplined way, without having to navigate the volatility alone. The strategy has historically protected capital through episodes like the 2013 Taper Tantrum and COVID-19 while still participating in recoveries.

For investors looking to diversify away from IDR: Dollar Bond Fund (DBF)

For clients concerned about rupiah weakness, the Dollar Bond Fund offers USD exposure through a mix of USD-denominated Indonesian government and corporate bonds — quality fixed income instruments, outside of rupiah risk. Over the past 20 years, the IDR has depreciated at approximately 4% per year against the USD, a persistent structural headwind for unhedged rupiah assets. DBF exists for clients who want to grow their wealth in USD terms without fully stepping away from Indonesia. Contact us here to learn more.

Now, we want to hear from you.

This invitation is for anyone who has experienced AMP firsthand, whether you still hold your portfolio today or have since redeemed it. As we continue refining AMP, your experience and expectations matter just as much as the numbers. We’re conducting a short survey to better understand how AMP has worked for you and where we can do even better.

As a token of appreciation, we’ll randomly select 5 participants to receive Rp200,000.

Your feedback helps us enhance our portfolio management services and deliver an even better investment experience. All responses are kept confidential.

Take the Survey

May was a difficult month for Indonesian markets. The IHSG fell 11.92%, a sharp deterioration from April’s -1.30%, driven by a combination of aggressive foreign selling, new government export regulations, and a Rupiah that broke through the 17,800 level against the US Dollar. Through our May Monthly Investor Update, we outline what happened, how our funds performed, and how we are thinking about what comes next.

May Market Highlights

1. The JCI Fell 11.92% — Its Worst Monthly Performance in Recent Memory

Indonesian equity markets came under severe pressure in May, with monthly losses accelerating sharply from the -1.30% recorded in April. The selloff was broad-based, driven by a confluence of domestic policy uncertainty and sustained foreign outflows tied to the MSCI Indonesia rebalancing. Foreign investors recorded net outflows of approximately IDR 19.44 trillion from the MSCI Indonesia universe, with selling concentrated heavily in momentum-driven stocks and conglomerate names. The JCI is now at year-to-date lows, though from a valuation standpoint this begins to open up selective entry opportunities for disciplined investors.

2. New Government Export Regulations Added to Policy Uncertainty

One of the more significant domestic developments in May was the introduction of new export regulations for selected commodities. Under these rules, export activities can now only be conducted by government-appointed authorities, effectively reducing private sector participation. This added a layer of regulatory uncertainty on top of already fragile market sentiment, and directly impacted the performance of commodity-linked equities.

3. Bank Indonesia Raised the BI-Rate by 50bps — More Than Markets Expected

Sustained foreign outflows put additional pressure on the Rupiah, pushing USD/IDR through the ~17,800 level. In response, Bank Indonesia raised the BI-Rate by 50 basis points, exceeding market expectations of a 25bps hike. The move was primarily aimed at stabilizing the currency amid continued US Dollar strength. Beyond the rate decision, BI also intervened in the fixed income market through purchases of mid-to-long tenor government bonds and implemented capital flow management measures to support domestic bond yields and reduce the risk of further capital flight.

How Did Simpan’s Funds Perform?

All funds under our management, except Simpan Bond Fund and Simpan Cash Fund, underperformed their respective benchmarks in May. This outcome was broadly in line with market conditions — the sharp equity correction and sustained foreign outflows weighed on risk assets across the board, and no equity-oriented strategy was fully insulated.

That said, our AMP portfolios held up better than their benchmarks at every risk level. Risk 2 through 5 portfolios outperformed due to their relatively lower equity exposure going into the month, a positioning we had maintained from April’s rebalancing. Risk 1 portfolios experienced a modest drag from longer duration positioning in our bond holdings, though the impact was contained. Our fixed income funds fared well — the Simpan Bond Fund returned +0.43% against a benchmark of +0.29%, as government bond yields trended lower over the month.

Market Outlook & Portfolio Positioning

Our outlook for June is neutral on Indonesian equities. Much of the negative sentiment from May appears to have been priced in, and the MSCI rebalancing — which was a major source of selling pressure — has now run its course. That said, markets remain cautious, and we are not yet at a point where we would describe conditions as clearly improving.

A few key events in June will shape the path ahead. S&P Global Ratings is due to deliver its sovereign outlook decision for Indonesia, and MSCI will conduct its market accessibility assessment during the month. Both carry the potential to meaningfully influence sentiment in either direction. The USD/IDR level and concerns around Indonesia’s fiscal sustainability also continue to weigh on investor confidence.

Against this backdrop, we have made a measured shift in portfolio positioning. We are gradually increasing equity exposure across AMP portfolios, moving away from the fully defensive stance of recent months, and doing so selectively — focusing on companies with strong fundamentals, resilient balance sheets, and clear earnings visibility that we believe are better placed to weather continued volatility.

Below is a summary of some of the key trades we made in May:

Equities — Key Trades

Fixed Income — Key Trades

In Fixed Income, we maintained a cautious approach to duration with an average portfolio duration of 5.70 years, slightly above the benchmark’s 5.30 years. We are actively monitoring opportunities to selectively extend duration, particularly at the shorter end of the yield curve where risk-reward dynamics have become more attractive. Geopolitical developments in the Middle East remain a key area of focus given their potential flow-through to oil prices, the Rupiah, and global liquidity conditions including petrodollar flows.

We will continue to monitor developments closely and remain fully committed to managing your investments with the same care and diligence as ever. As always, thank you for your continued trust.

Monthly Investor Update (ENG)

Monthly Investor Update (ID)

The Indonesian market is going through a turbulent stretch. For investors, that often means a flood of conflicting signals: one headline says buy, another says hold, and it’s hard to know who to trust, let alone what to actually do with your money.

That’s exactly when clear thinking matters most. And it’s exactly why we’re opening up our Inner Circle.

What is the inner circle

A private space where we think out loud

Our Inner Circle is access to our Close Friends list on Instagram, a private space where our founders share the kind of thinking that doesn’t make it into a newsletter or a polished report.

• What’s actually happening in the Indonesian market right now.

• What the current conditions mean concretely.

• The frameworks and thinking process we use to make investment decisions, so you can sharpen your own.

It’s an honest look at how we operate. Think of it as getting a seat at the table before you ever put money on it.

Why we’re doing this

We believe trust is earned, not given.

Most investment platforms ask you to trust them with your money before they have earned your trust. We want to do the opposite.

Before you invest with us, we want you to show you how we communicate, how we think when markets are uncertain, and how we make decisions when there’s no easy answer. This is your chance to get to know us better, on your terms.

How to join

One simple steps

Make sure you have opened an account at Simpan before submitting your Instagram handle through our Google Form: https://forms.gle/anwozRFs8yJUSSgaA

We’ll add you to the Close Friends list within 1–2 business days. See you!

Indonesia’s capital markets have faced a confluence of pressures, some structural, some self-inflicted, and navigating them has required a clear head and a willingness to sit with discomfort a little longer than feels comfortable. If you have been watching your portfolio with one eye and the news with the other, we hope this update gives you a cleaner picture of what is actually happening, and what we are doing about it.

The MSCI review concluded with six Indonesian equities removed from the MSCI Indonesia Standard Index, effective 29 May. The outcome was sharper than we initially anticipated, likely a consequence of MSCI immediately incorporating KSEI’s disclosure of concentrated ownership structures, which reduced the recognised free float of several names overnight.

Indonesia’s weighting within the MSCI Emerging Markets Index is now expected to decline from roughly 0.72% to 0.61%, a reduction of nearly 15.3%. We estimate combined outflows from active and passive funds tied to the exclusions at around USD 1.7 billion, with total potential outflows, including the broader downweighting effect on remaining constituents, approaching USD 2.8 billion. The Jakarta Composite Index reflected this, falling as much as 4% to a low of 6,400 before partially recovering to a loss of 1.85%, closing at 6.599.24 as of 18 May 2026.

But here is the more important point: we believe the risk of Indonesia being reclassified into Frontier Markets has now been effectively removed. The remaining overhang is about index weighting, not existential market status. Much of the worst-case scenario appears priced in. That does not mean smooth sailing ahead, near-term pressure on equities is likely to persist but it does mean the character of the risk has shifted. That matters.

Indonesia’s Ongoing PR Challenge

There is a version of this update that only talks about MSCI flows and rupiah levels. But that would miss what is, ironically, the more consequential issue right now, Indonesia’s relationship with its own narrative in front of a global audience.

Recent remarks from government leaders on the rupiah’s depreciation have done little to reassure international markets. At the time of writing, the rupiah has weakened toward 16,750 against the dollar. The framing around exchange rate moves as something manageable misses a structural reality: the US dollar is deeply embedded in Indonesia’s economic engine. Imported fuel, subsidised commodities, the soybeans that go into the tempeh and tahu on your table, all of it priced in dollars. When the rupiah weakens, that cost does not stay in a spreadsheet. It filters through to businesses and households, quietly and persistently.

Beyond currency, the deeper issue is one of predictability. Global investors, whether allocating short-term portfolio flows or committing to longer-term foreign direct investment, do not just price fundamentals. They price their confidence that the rules of the game will remain consistent. When that confidence wavers, capital finds somewhere else to go. And rebuilding trust, as most investors instinctively know, always takes longer than losing it.

Where we stand, and how we are positioned.

Despite the turbulence, we believe Indonesia’s capital markets are gradually approaching a bottoming phase. We anticipate continued intervention from Bank Indonesia and the government to support rupiah stability, and with the MSCI uncertainty now largely resolved, the conditions for sentiment to normalise, slowly, unevenly, are beginning to take shape.

Here is how we are thinking about the major asset classes right now.

Fixed Income

Indonesian government bond yields are hovering around 6.8% (Indo 10Y), a level that presents a genuinely attractive entry point for investors already holding rupiah assets. We have been recommending increasing fixed income exposure and lengthening duration at current yield levels. This remains our preferred positioning for Bond Funds.

Equities

Near-term volatility is not going away, and we will not pretend otherwise. But we continue to believe that equities remain the most compelling long-term asset class for participating in Indonesia’s structural growth story, more so than dollar assets or other rupiah-denominated classes. Short-term noise, however uncomfortable, does not change that underlying calculus.

Dollar exposure

Dollar-denominated assets continue to serve as a genuine hedge and portfolio diversifier in this environment, and we may have a specific Simpan update on this front coming soon.

Actively managed portfolios

We had already positioned defensively heading into May, with equity allocation at 12% and balanced positions of 44% each in cash and bond funds. That posture was designed precisely for moments like this: to preserve capital while retaining the flexibility to redeploy risk as conditions stabilise. AMP is doing what it was built to do, so that you do not have to time anything yourself.

The market this month has been an uncomfortable reminder that investing in any single country, even one with Indonesia’s long-term potential, demands patience for the periods when the story gets complicated and the headlines get loud. Historically, those tend to be exactly the moments worth holding through.

As always, we are here if you want to talk through your positioning.

The Jakarta Composite Index (JCI) traded relatively flat last week, ending the week marginally lower by -0.28%. Market sentiment remained fairly stable during the first few trading days, before weakening sharply on Friday, when the index declined by -2.86%.

The sell-off was primarily driven by news regarding a new proposal from the Ministry of Energy and Mineral Resources regarding a proposed revision to Government Regulation (PP) No. 19 of 2025 to increase royalty tariffs for commodity producers (copper, gold, tin, and nickel ore), with rates of up to 20%. The government stated that the proposed adjustment is intended to better align with prevailing commodity price dynamics, ensuring the country benefits from its natural resources, especially given elevated commodity prices. At the same time, the proposal is also part of broader efforts to strengthen state revenues amid widening fiscal pressures, rising energy subsidy requirements, and other government programs such as the MBG (Free Nutritious Meal) initiative.

Following the announcement, commodity-related sectors experienced significant selling pressure. The Energy sector was among the weakest performers, declining -5.7% WoW, while the Basic Materials sector fell -5.6% WoW. Foreign investors were net sellers of approximately ~IDR 0.49T on Friday alone, with selling concentrated in commodity-linked names such as BUMI, TINS, and BREN.

However, earlier today, the Energy and Mineral Resources Minister Bahlil Lahadalia announced in a press conference that the implementation of the new regulation would be delayed. He also noted that the royalty calculation formula will be changed, with the government aiming to reach a more balanced “win-win” framework for both the state and business sectors. In addition, the government remains open to further input from the mining sector regarding the proposed royalty structure. The JCI saw a slight decline of -0.92% today.

How Did Our Funds Perform?

In line with broader market weakness, our equity-oriented portfolios were also affected, particularly given our exposure to several commodity-related holdings. On Friday, our Sustainable Equity Fund declined by -3.31%, with names such as AMMN, EMAS, and AADI being top laggards. Our Balanced Fund (-1.75%) and Amanah Syariah Fund (-1.87%) also saw declines but still outperformed the JCI, supported by their fixed income allocations which helped cushion market volatility.

What Is Our Outlook Going Forward?

We view the recent correction largely as a “panic sell on news” reaction rather than the start of a structural downturn. While near-term volatility may persist, we do not expect selling pressure to continue at the same magnitude. From a technical perspective, we believe the index is currently trading at support levels, with the ~6,500 level representing the next key support level should weakness continue.

We believe that commodity-related companies remain well-positioned in inflationary environments, particularly given that ongoing geopolitical tensions continue to support elevated commodity prices. Even if the war de-escalates, the broader implications (supply chains, inflation) are likely to persist over the medium term.

While our portfolios contain selective exposure to commodity-related names, they are also well-diversified across sectors and contain high-quality blue-chip companies with resilient fundamentals and strong earnings visibility. Beyond commodities, our portfolios also maintain exposure to sectors such as banking and telecommunications.

As always, we remain committed to managing your investments with prudence and discipline. We will continue to monitor developments closely and keep you updated accordingly.

Indonesian markets continued to see volatility in April, as geopolitical tensions, persistently elevated oil prices, and Rupiah weakness continued to dampen investor sentiment. Through our April Monthly Investor Update, we outline market highlights, Simpan’s funds’ performance, our outlook ahead, and how we’re positioning portfolios.

April Market Highlights

1. Jakarta Composite Index (JCI) Traded Volatile, Closing Out Lower By -1.30% in April

The JCI rebounded in the first half of April but came under pressure in the latter half, ultimately closing the month down by -1.30%. Elevated energy prices continued to raise concerns over Indonesia’s inflation and fiscal outlook, weighing on investor sentiment and triggering broad-based weakness across equities. Foreign investors remained net sellers, recording outflows of ~IDR 17.72T, largely concentrated in major banking stocks such as BBCA, BBRI, and BMRI. Persistent capital outflows also added pressure on the Rupiah, with USD/IDR breaching above the ~17,300 level during the month.

2. Both BI and The Fed Kept Rates Unchanged

Amid heightened uncertainty, the Fed maintained its benchmark rate, adopting a “wait-and-see” approach as it balanced persistent inflationary pressures against a resilient but gradually moderating labour market. Similarly, BI kept rates unchanged to prioritize Rupiah stability. Indonesia’s March CPI rose to 3.8% YoY, above BI’s target range of 1.5% – 3.5%, limiting the central bank’s room for monetary easing in the near term.

How Did Simpan’s Funds Perform?

Despite heightened market volatility, all of our funds delivered positive returns during the month, with all funds outperforming their respective benchmarks except for our Bond Fund. In particular, our equity-oriented portfolios outperformed the JCI, supported by our prior positioning in commodity-linked names.

Our AMP portfolios also generated positive returns and outperformed benchmarks. Performance in Risk 1 portfolios was primarily driven by gains in bond holdings, while returns in Risk 2–5 portfolios were mainly supported by our equity allocations.

Market Outlook & Portfolio Positioning

Our outlook for May remains bearish, particularly due to geopolitical tensions that still persist. Elevated energy prices continue to raise concerns over inflationary pressures and Indonesia’s fiscal position. In addition, we expect the upcoming MSCI index rebalancing and continued Rupiah weakness to sustain foreign outflows, which could further pressure domestic markets.

Given the fragile near-term risk sentiment, we are maintaining a defensive investment stance. In equities, our strategy remains focused on companies with strong earnings visibility and resilient fundamentals. We remain constructive on commodities, supported by elevated energy prices, resilient demand, and their role as a hedge against macroeconomic uncertainty and inflation.

Below are some of the stocks we bought and sold in April:

In Fixed Income, we maintain a cautious stance on duration, while monitoring opportunities to extend duration as yields become more attractive. Given geopolitical risks, we are also closely tracking implications for global liquidity, including petrodollar flows and potential policy responses in Indonesia, especially around the fiscal deficit and inflation.

Across AMP portfolios, we are keeping portfolio allocation unchanged. Within Risk 2 –5 portfolios, the relatively lower equity exposure and higher allocation to cash and fixed income instruments provide flexibility to increase equity positions opportunistically once there are clearer signs of market stabilization, such as easing geopolitical tensions, a strengthening Rupiah, or a return of foreign inflows.

We continue to monitor developments closely and remain committed to managing your investments with the same dedication and care as ever. We thank you for your continued trust.

PT Simpan Asset Management, as the Investment Manager of the SIMPAN SUSTAINABLE EQUITY FUND MUTUAL FUND, hereby announces several amendments to the CIC and Prospectus of the SIMPAN SUSTAINABLE EQUITY FUND (“SIMPAN SUSTAINABLE EQUITY FUND”) concerning the following matters:

1. Changes to the composition of the Investment Management Team in the Prospectus;

2. Amendment to the minimum subscription amount for Participation Units from “IDR 100,000 (one hundred thousand Rupiah) for each Unit Holder” to “IDR 10,000 (ten thousand Rupiah) for each Unit Holder”;

3. Amendment to the Investment Manager fee provision from “a maximum of 3% (three percent) per annum” to “a maximum of 5% (five percent) per annum”;

4. Addition of commercial features in accordance with POJK Number 33 of 2024 dated 19 December 2024 regarding the Development and Strengthening of Investment Management in the Capital Market, including:

   • Addition of features allowing SIMPAN SUSTAINABLE EQUITY FUND to receive and/or provide loans; and

   • Addition of an option to invest in Foreign Mutual Fund Securities;

5. Adjustments to provisions in the CIC and Prospectus to comply with applicable Laws and Financial Services Authority Regulations (“POJK”), including:

   • Addition of the definition of POJK Number 56/POJK.04/2020 dated 3 December 2020 regarding Mutual Fund Reporting and Accounting Guidelines; and

   • POJK Number 33 of 2024 dated 19 December 2024 regarding the Development and Strengthening of Investment Management in the Capital Market;

6. Adjustments to provisions in the CIC and Prospectus in accordance with Financial Services Authority policies.

This announcement is hereby conveyed to the Participation Unit Holders of the SIMPAN SUSTAINABLE EQUITY FUND MUTUAL FUND and other interested parties.

Pengumuman realisasi Kontrak Investasi Kolektif (“KIK”) dan prospektus Reksa Dana Simpan Sustainable Equity Fund

PT Simpan Asset Management, selaku Manajer Investasi dari REKSA DANA SIMPAN SUSTAINABLE EQUITY FUND, menginformasikan beberapa perubahan yang akan dilakukan terhadap KIK dan Prospektus REKSA DANA SIMPAN SUSTAINABLE EQUITY FUND (”SIMPAN SUSTAINABLE EQUITY FUND”) terkait hal-hal sebagai berikut:

1. Perubahan susunan Tim Pengelola Investasi dalam Prospektus;

2. Perubahan ketentuan mengenai batas minimum pembelian Unit Penyertaan yang semula “sebesar Rp 100.000,- (seratus ribu Rupiah) untuk setiap Pemegang Unit Penyertaan” menjadi “sebesar Rp10.000,- (sepuluh ribu Rupiah) untuk setiap Pemegang Unit Penyertaan”;

3. Perubahan ketentuan mengenai imbalan jasa Manajer Investasi yang semula “maksimum sebesar 3% (tiga persen) per tahun” menjadi “ maksimum sebesar 5% (lima persen) per tahun”;

4. Penambahan fitur komersil sesuai dengan POJK Nomor 33 Tahun 2024 tanggal 19 Desember 2024 tentang Pengembangan dan Penguatan Pengelolaan Investasi di Pasar Modal antara lain mengenai:

1. Penambahan fitur SIMPAN SUSTAINABLE EQUITY FUND menerima dan/atau memberikan pinjaman; dan

2. Penambahan fitur opsi untuk berinvestasi pada Efek Reksa Dana Luar Negeri;

5. Penyesuaian ketentuan dalam KIK dan Prospektus terhadap Undang-Undang, Peraturan Otoritas Jasa Keuangan (“POJK”) antara lain sebagai berikut:

1. Penambahan definisi POJK Nomor 56/POJK.04/2020 tanggal 3 Desember 2020 tentang Pelaporan dan Pedoman Akuntansi Reksa Dana; dan

2. POJK Nomor 33 Tahun 2024 tanggal 19 Desember 2024 tentang Pengembangan dan Penguatan Pengelolaan Investasi di Pasar Modal.

6. Penyesuaian ketentuan-ketentuan dalam KIK dan Prospektus dengan kebijakan Otoritas Jasa Keuangan.

Demikian pengumuman ini disampaikan kepada para Pemegang Unit Penyertaan REKSA DANA SIMPAN SUSTAINABLE EQUITY FUND serta pihak-pihak yang berkepentingan.

PT Simpan Asset Management, as the Investment Manager of the SIMPAN BOND FUND MUTUAL FUND, hereby announces several amendments to the CIC and Prospectus of the SIMPAN BOND FUND (“SIMPAN BOND FUND”) concerning the following matters:

1. Changes to the composition of the Investment Management Team in the Prospectus;

2. Implementation of provisions related to Unit Classes (Multi Shareclass), including the following amendments:

   • Issuance of the following SIMPAN BOND FUND Unit Classes:

     • SIMPAN BOND FUND Class A; and

     • SIMPAN BOND FUND Income Class;

   • Amendments and/or additions to several definitions related to the multi-shareclass structure, including the definitions of Investment Switching Form, Unit Class, Net Asset Value, Unit Holder, Addition of New Unit Class, Public Offering of New Class, Participation Unit, Confirmation Letter of Participation Unit Transaction, and Date of Addition of Unit Class;

   • Amendments to provisions regarding SIMPAN BOND FUND Participation Units, including:
     (i) the number of Participation Units offered for both SIMPAN BOND FUND and each Unit Class,
     (ii) segmentation of Unit Classes, and
     (iii) provisions regarding the addition of Unit Classes and the number of Participation Units for each Unit Class;

   • Amendments to the procedures for Subscription, Redemption, and Investment Switching of Participation Units so that such provisions apply to each respective Unit Class;

   • Amendments to the Investment Return Distribution Policy for each Unit Class;

   • Addition of a transitional provision stating that existing holders of SIMPAN BOND FUND Participation Units will automatically become holders of SIMPAN BOND FUND Class A Participation Units without any change in the number of Participation Units owned; and

   • Addition of provisions regarding the Addition and Closure of Unit Classes;

3. Amendment to the minimum initial and subsequent subscription amount for Participation Units from “IDR 100,000 (one hundred thousand Rupiah) for each Unit Holder” to “IDR 10,000 (ten thousand Rupiah) for each Unit Holder”;

4. Amendment to the minimum redemption amount for Participation Units from “IDR 100,000 (one hundred thousand Rupiah) per transaction” to “IDR 10,000 (ten thousand Rupiah) per transaction”;

5. Amendment to the minimum investment switching amount from “IDR 100,000 (one hundred thousand Rupiah) per transaction” to “IDR 10,000 (ten thousand Rupiah) per transaction”;

6. Addition of commercial features in accordance with POJK Number 33 of 2024 dated 19 December 2024 regarding the Development and Strengthening of Investment Management in the Capital Market, including:

   • Addition of features allowing SIMPAN BOND FUND to receive and/or provide loans; and

   • Addition of an option to invest in Foreign Mutual Fund Securities;

7. Adjustments to provisions in the CIC and Prospectus to comply with applicable Laws and Financial Services Authority Regulations (“POJK”), including:

   • Addition of the definition of POJK Number 56/POJK.04/2020 dated 3 December 2020 regarding Mutual Fund Reporting and Accounting Guidelines; and

   • POJK Number 33 of 2024 dated 19 December 2024 regarding the Development and Strengthening of Investment Management in the Capital Market;

8. Adjustments to provisions in the CIC and Prospectus in accordance with Financial Services Authority policies.

This announcement is hereby conveyed to the Participation Unit Holders of the SIMPAN BOND FUND MUTUAL FUND and other interested parties.

Pengumuman realisasi perubahan Kontrak Investasi Kolektasi (“KIK”) dan Prospektus Reksa Dana Simpan Bond Fund

PT Simpan Asset Management, selaku Manajer Investasi dari REKSA DANA SIMPAN BOND FUND, menginformasikan beberapa perubahan yang akan dilakukan terhadap KIK dan Prospektus REKSA DANA SIMPAN BOND FUND (”SIMPAN BOND FUND”) terkait hal-hal sebagai berikut:

1. Perubahan susunan Tim Pengelola Investasi dalam Prospektus;

2. Penerapan ketentuan terkait Kelas Unit Penyertaan (Multi Shareclass) dengan rincian perubahan ketentuan sebagai berikut:

1. Penerbitan Kelas Unit Penyertaan SIMPAN BOND FUND sebagai berikut:

• SIMPAN BOND FUND Kelas A; dan

• SIMPAN BOND FUND Kelas Income;

2. Perubahan dan/atau penambahan beberapa definisi sehubungan dengan multi shareclass antara lain definisi Formulir Pengalihan Investasi, Kelas Unit Penyertaan, Nilai Aktiva Bersih, Pemegang Unit Penyertaan, Penambahan Kelas Unit Penyertaan Baru, Penawaran Umum Kelas Baru, Unit Penyertaan, Surat Konfirmasi Transaksi Unit Penyertaan, Tanggal Penambahan Kelas Unit Penyertaan;

3. Perubahan ketentuan mengenai Unit Penyertaan SIMPAN BOND FUND, antara lain (i) jumlah Unit Penyertaan yang ditawarkan baik untuk SIMPAN BOND FUND maupun untuk masing-masing Kelas Unit Penyertaan, (ii) segmentasi Kelas Unit Penyertaan, serta (iii) ketentuan mengenai penambahan jumlah Kelas Unit Penyertaan dan jumlah Unit Penyertaan masing-masing Kelas Unit Penyertaan;

4. Perubahan ketentuan Tata Cara Pembelian Unit Penyertaan, Tata Cara Penjualan Kembali Unit Penyertaan dan Tata Cara Pengalihan Investasi sehingga ketentuannya berlaku untuk masing-masing Kelas Unit Penyertaan;

5. Perubahan ketentuan Kebijakan Pembagian Hasil Investasi untuk masing-masing Kelas Unit Penyertaan;

6. Penambahan ketentuan peralihan bahwa Pemegang Unit Penyertaan yang telah memiliki Unit Penyertaan SIMPAN BOND FUND akan menjadi Pemegang Unit Penyertaan SIMPAN BOND FUND Kelas A tanpa menyebabkan perubahan jumlah kepemilikan Unit Penyertaan; dan

7. Penambahan ketentuan Penambahan dan Penutupan Kelas Unit Penyertaan;

3. Perubahan ketentuan mengenai batas minimum pembelian awal dan selanjutnya Unit Penyertaan yang semula “sebesar Rp 100.000,- (seratus ribu Rupiah) untuk setiap Pemegang Unit Penyertaan” menjadi “sebesar Rp10.000,- (sepuluh ribu Rupiah) untuk setiap Pemegang Unit Penyertaan”;

4. Perubahan ketentuan mengenai batas minimum penjualan kembali Unit Penyertaan semula “sebesar Rp 100.000,- (seratus ribu Rupiah) untuk setiap transaksi” menjadi “sebesar Rp10.000,- (sepuluh ribu Rupiah) untuk setiap transaksi”;

5. Perubahan ketentuan mengenai batas minimum pengalihan investasi semula “sebesar Rp 100.000,- (seratus ribu Rupiah) untuk setiap transaksi” menjadi “sebesar Rp10.000,- (sepuluh ribu Rupiah) untuk setiap transaksi”;

6. Penambahan fitur komersil sesuai dengan POJK Nomor 33 Tahun 2024 tanggal 19 Desember 2024 tentang Pengembangan dan Penguatan Pengelolaan Investasi di Pasar Modal antara lain mengenai:

1. Penambahan fitur SIMPAN BOND FUND menerima dan/atau memberikan pinjaman; dan

2. Penambahan fitur opsi untuk berinvestasi pada Efek Reksa Dana Luar Negeri;

7. Penyesuaian ketentuan dalam KIK dan Prospektus terhadap Undang-Undang, Peraturan Otoritas Jasa Keuangan (“POJK”) antara lain sebagai berikut:

1. Penambahan definisi POJK Nomor 56/POJK.04/2020 tanggal 3 Desember 2020 tentang Pelaporan dan Pedoman Akuntansi Reksa Dana; dan

2. POJK Nomor 33 Tahun 2024 tanggal 19 Desember 2024 tentang Pengembangan dan Penguatan Pengelolaan Investasi di Pasar Modal; dan

8. Penyesuaian ketentuan-ketentuan dalam KIK dan Prospektus dengan kebijakan Otoritas Jasa Keuangan.

Demikian pengumuman ini disampaikan kepada para Pemegang Unit Penyertaan REKSA DANA SIMPAN BOND FUND serta pihak-pihak yang berkepentingan.

Rupiah weakness has been dominating headlines lately, with USD/IDR breaking above the 17,000 level. The question a lot of people have been asking is: is this just temporary, or are we looking at a new normal?

To answer this question, our Investment Team recently published a research piece covering key topics such as structural drivers behind Rupiah’s weakness, how foreign investors actually see Indonesia, what the Rupiah is actually worth, and how investors should position their portfolios. Below is a quick breakdown of the key points. For the full analysis, you can access the complete report here.

Rupiah Depreciation Isn’t New

As shown in the chart below, the Rupiah has weakened by ~85% against the USD since 2005, translating to an annualized depreciation rate of ~2.9%. Two structural factors drive this weakness: inflation differentials between the U.S. and Indonesia, and a persistent current account deficit.

Since 2022, depreciation has accelerated to ~3.5% annually, reflecting the unwind of the global carry trade—the mechanism that supported the Rupiah throughout the 2010s.

What Do Foreign Investors Actually See?

Equities: Currency Drag Erodes Returns

The Jakarta Composite Index (JCI) has delivered ~9.6% annual returns in IDR terms over the past two decades. However, that’s not the number that foreign investors see. When the returns are converted back into USD, currency depreciation has consistently eroded returns, making Indonesian equities far less attractive, thus making it difficult to retain foreign investors and capital.

Fixed Income: The Carry Trade Is Breaking

Indonesian government bonds (SBN) were historically the primary vehicle through which foreign investors engage with Indonesia. The “carry trade” phenomenon involves foreign investors borrowing cheaply in USD and using it to invest in higher-yielding IDR SBNs.

However, the “net carry”, what a US investor actually earns after costs, is far less attractive, shown in the table below. This explains why foreign SBN demand has seen a structural decline, even though gross yields have remained elevated.

Furthermore, the rate differential between the U.S. and Indonesia has narrowed in recent years, reducing the margin of safety for carry trades and making IDR assets less attractive relative to developed markets. At the same time, sovereign risk has increased, with Indonesia’s 10Y CDS (Credit Default Swap) around 136 bps — way above the 100 bps level that typically raises concern among global investors.

With credit ratings sitting near the lower end of investment grade (Baa2/BBB), there is limited buffer before a potential downgrade, further weighing on investor sentiment.

Foreign Flows: The Structural Exit

In recent years, foreign ownership in Indonesian equities and fixed income has declined significantly. Foreign ownership of JCI market capitalisation has declined from a peak of approximately 40% in 2013–2014 to around 18% by April 2026. In fixed income, ownership has collapsed from 38.5% in 2019 to 12.6% in April 2026.

That being said, there is a contrarian implication. With foreign ownership already significantly reduced, the scope for further selling is more limited. Our view is that, once the Rupiah begins to stabilize, the upside from renewed inflows could be more meaningful. That being said, the next major directional move in foreign positioning is more likely to be inflows rather than continued outflows.

What is the Rupiah Actually Worth?

Our Investment Team conducted three valuation frameworks: Purchasing Power Parity (PPP), Real Return Adjusted, and Real Effective Exchange Rate. Through these three frameworks, we conclude that the Rupiah is undervalued. For a more detailed explanation of our valuation methodologies, click here to read our research paper.

This suggests that the current exchange rate level is not a fundamental equilibrium but rather a liquidity and risk-premium price, driven by factors that are at least partially cyclical and therefore potentially reversible.

What’s Needed to Stabilize the Rupiah?

We identified three key factors, outlined below:

1. Necessary Conditions: The Cyclical Pivot

The Rupiah is heavily influenced by external “global gravity,” meaning domestic policy alone cannot stabilize it. A durable floor depends on three shifts: a credible Fed easing cycle to restore rate differentials and weaken the USD, lower oil prices (ideally below $85/bbl) to ease fiscal and current account pressures, and stable FX reserves to maintain market confidence. Without improvement in these factors, structural pressure on the IDR is likely to persist.

2. Structural Catalysts: The Policy Shift

Cyclical improvements alone won’t stabilize the Rupiah; lasting strength requires shifting from a “trading proxy” to an investment-driven currency with steady USD inflows. This hinges on higher-quality FDI — particularly export-oriented manufacturing (à la Vietnam) rather than commodity-linked inflows — alongside deeper domestic demand for government bonds to reduce reliance on foreign capital. Additionally, expanding local currency settlement and de-dollarization efforts can gradually reduce structural USD demand. Together, these reforms would build a more resilient and self-sustaining foundation for the IDR.

3. The Credit Rating Overhang: Indonesia’s Biggest Tail Risk

A sovereign downgrade is the biggest tail risk for the Rupiah, as it would trigger forced selling across bonds and equities and overwhelm BI’s ability to stabilize the currency.Indonesia currently holds investment-grade ratings from all three major agencies: Baa2 from Moody’s (equivalent to BBB), BBB from S&P, and BBB from Fitch. But with negative outlooks, a cut toward BBB- or below could drive index exclusion, capital outflows, and higher borrowing costs. Key risks to watch are a widening fiscal deficit, rising debt levels, and weakening FX reserves. A shift from negative outlook to an actual downgrade would likely accelerate IDR depreciation.

Given the Recent Rupiah Weakness, What Should Investors Do?

Equities:

Maintain exposure to commodity linked and export oriented equities, especially companies that earn their revenue in USD (e.g. Indonesian coal, CPO, nickel producers). At the same time, be selective on import dependent sectors. Furthermore, watch the big-cap banks as a proxy for inflow; when foreign flows return, big caps are usually first.

Fixed Income:

Stay cautious. Favor short- to mid-duration SBNs and maintain higher cash buffers. Longer duration only becomes attractive once spreads stabilize and a Fed pivot is credible.

Bottom Line

To summarize, Rupiah weakness isn’t a mystery. It’s a result of years of inflation differentials, persistent current account deficits, and a steady withdrawal of foreign capital, leaving the currency on a structurally weaker path. Foreign investor behavior reinforces this: USD-based equity returns have been eroded by currency drags, while bond ownership has fallen to multi-decade lows as the carry trade becomes less attractive.

At the same time, valuation models suggest the Rupiah is meaningfully undervalued, suggesting that current levels are driven more by risk premium and global conditions than fundamentals. The key downside risk remains a potential credit rating downgrade, which could trigger forced outflows and further increase pressure on the currency.

Ongoing uncertainty surrounding the escalation of the US/Israel–Iran conflict continued to weigh on markets this week, with the JCI declining by -6.97%. Notably, the index fell sharply by -3.25% today, with broad-based selling across blue-chip and conglomerate stocks.

Meanwhile, Brent crude oil remains elevated at around USD $100/bbl, dampening investor sentiment as higher-for-longer energy prices raise concerns over inflation and Indonesia’s domestic fiscal policy. As a net oil importer, Indonesia is particularly exposed to rising oil prices, which may further strain fiscal conditions.

In addition to geopolitical pressures, continued Rupiah weakness has further weighed on sentiment. The currency remains near IDR 17,200/USD, surpassing levels seen during the COVID-19 pandemic. This reflects persistent “risk-off” positioning, with capital outflows from emerging markets such as Indonesia. While foreign investors recorded net outflows of approximately IDR 11.83T (as of April 24th), there were signs of selective accumulation, particularly in commodities & energy, industrials, and consumer sectors, suggesting that while overall positioning remains cautious, foreign investors are gradually rotating into preferred segments rather than exiting the market entirely. Given ongoing Rupiah weakness, BI maintained its policy rate at 4.75% during its last meeting in April, prioritizing currency stability while balancing inflation and growth. With inflation at 3.48% in March, near the upper end of BI’s 1.5% – 3.5% target range alongside continued Rupiah weakness, the central bank is likely to remain on hold for longer.

Regionally, other Asian currencies such as the Philippine Peso and South Korean Won also weakened. In addition to equities, the bond market saw pressure as well from foreign outflows, with the 10-year Indonesian Government Bond yield rising to 6.72% as of today.

Simpan’s Views

Given ongoing uncertainty around the duration and trajectory of the conflict, we expect market volatility to persist. As highlighted in our March Monthly Investor Update, a sustained shift back to “risk-on” would likely require either a clear de-escalation in the Middle East (specifically, a ceasefire driving Brent below USD $85/bbl) or stabilization in the Rupiah which in return would bring some relief to Indonesia’s fiscal spending.

Despite near-term volatility, our investment approach remains anchored in fundamentals. We continue to focus on resilient companies with solid earnings visibility, with meaningful exposure to commodity-linked sectors that are well-positioned in an inflationary environment. At the same time, we maintain selective exposure to sectors such as financials and telecommunications.

When the market pulls back, we view it as an opportunity to further add exposure on names that are on our watchlist. For investors seeking long-term capital appreciation, our Sustainable Equity Fund remains well-positioned to capture these opportunities.

In March, escalating geopolitical tensions between the US/Israel and Iran weighed heavily on investor sentiment, triggering a broad-based sell-off across both equities and bonds. Through our March Monthly Investor Update, we outline what happened, how our funds performed, and our outlook ahead.

March Market Highlights

JCI Saw Significant Pressure, Declining -14.2% MoM

In addition to geopolitical tensions, Rupiah weakness, elevated oil prices, and MSCI-related uncertainty reinforced a risk-off environment. As a result, the JCI declined -14.2% MoM, with the blue-chip index IDX30 down around -12%.

Foreign investors recorded net outflows of ~IDR 9T, with selling concentrated in banking names, specifically BBCA, BBRI, BBNI.

Global & Domestic Bond Market Under Pressure As Well

Elevated oil prices and inflation concerns drove a repricing of interest rate expectations, triggering a sell-off in the bond market both globally and domestically. As a result, US 10Y Treasury yields rose ~28 bps, while Indonesian 10Y Government Bond yields rose ~41 bps.

The Fed and BI Held Rates Steady

The Fed maintained rates at 3.5 – 3.75%, adopting a wait-and-see stance amid geopolitical uncertainty, higher than expected inflation readings, and mixed signs on the labor market. BI also held rates at 4.75%, prioritizing Rupiah stability and inflation control. However, they signaled room for rate cuts, provided the Rupiah stabilizes and inflation is controlled.

Simpan’s Funds Performance

Amid broader market weakness, almost all our funds posted declines and underperformed benchmarks, with the exception of our money market funds. However, our equity-oriented portfolios still outperformed the JCI, supported by our prior positioning in commodity-linked sectors.

AMP portfolios also declined, with Risk 1 impacted by bond exposure, while Risk 2–5 reflected broad-based equity weakness.

Simpan’s Market Outlook

We maintain a bearish outlook for April, driven by a “triple threat” of geopolitical tensions, currency instability, and MSCI rebalancing risks. Elevated oil prices above $100/bbl are expected to sustain inflationary pressures and pressure the Rupiah, while recent sovereign credit outlook downgrades have further weighed on foreign sentiment.

We expect continued volatility ahead of the MSCI review, with potential weight reductions in Indonesian equities posing risks of passive outflows. A sustained shift back to risk-on conditions would likely require clear de-escalation in the Middle East (specifically, a ceasefire that brings Brent below $85/bbl), or meaningful Rupiah stabilization.

Portfolio Positioning

Against this backdrop, we maintain a defensive and cautious positioning across both equities and fixed income. In equities, we are holding disciplined cash buffers, while our portfolio is heavily weighted towards commodity-linked sectors and inflation-resistant energy names. Specifically, we increased exposure to the coal sector, as well as a tactical allocation to select oil & gas names.

Below are some of the stocks we bought and sold.

In fixed income, we maintained our duration positioning. While yields have begun to ease, we are closely monitoring risks arising from developments in the Middle East, particularly through their direct impact on oil prices, bond yields, and the Rupiah.

Across AMP portfolios, we have reduced equity exposure in Risk 2–5 portfolios to limit downside risk and volatility, and instead increased allocation towards money market and bonds. In Risk 1 portfolios, we reduced allocation to bonds and increased allocation to money market, to preserve portfolio stability and reduce sensitivity to interest rate movements.

Amidst this challenging and uncertain environment, we continue to monitor developments closely and remain committed to managing your investments with the same dedication and care as ever. We thank you for your continued trust.

PT Simpan Asset Management, as the Investment Manager of SIMPAN SUSTAINABLE EQUITY FUND, hereby informs several amendments to be made to the CIC and Prospectus of SIMPAN SUSTAINABLE EQUITY FUND (“SIMPAN SUSTAINABLE EQUITY FUND”) in relation to the following matters:

A. Changes to the composition of the Investment Management Team in the Prospectus;

B. Amendment to the minimum subscription amount for Units from “IDR 100,000 (one hundred thousand Rupiah) per Unit Holder” to “IDR 10,000 (ten thousand Rupiah) per Unit Holder”;

C. Amendment to the Investment Manager’s fee from “a maximum of 3% (three percent) per annum” to “a maximum of 5% (five percent) per annum”;

D. Addition of commercial features in accordance with POJK No. 33 of 2024 dated 19 December 2024 regarding the Development and Strengthening of Investment Management in the Capital Market, including:
i. Addition of a feature allowing SIMPAN SUSTAINABLE EQUITY FUND to receive and/or provide loans; and
ii. Addition of an option to invest in offshore mutual fund securities;

E. Alignment of provisions in the CIC and Prospectus with applicable laws and Financial Services Authority (“OJK”) regulations, including:

1. Addition of the definition of POJK No. 56/POJK.04/2020 dated 3 December 2020 regarding Mutual Fund Reporting and Accounting Guidelines; and

2. POJK No. 33 of 2024 dated 19 December 2024 regarding the Development and Strengthening of Investment Management in the Capital Market;

F. Adjustment of provisions in the CIC and Prospectus in accordance with OJK policies.

Further details of the proposed amendments to the CIC and Prospectus can be obtained from the Investment Manager or accessed via the Investment Manager’s website at:

https://www.simpaninvest.com

This announcement is hereby conveyed to all Unit Holders of SIMPAN SUSTAINABLE EQUITY FUND and other relevant parties.

Jakarta, 2 April 2026
PT Simpan Asset Management
DBS Bank Tower, 17th Floor
Jl. Prof. Dr. Satrio No. 3–5
South Jakarta 12940

The Investment Manager is licensed and supervised by the Financial Services Authority.

Rencana Perubahan Kontrak Investasi Kolektif (“KIK”) dan Prospektus Reksa Dana Simpan Sustainable Equity Fund

PT Simpan Asset Management, selaku Manajer Investasi dari REKSA DANA SIMPAN SUSTAINABLE EQUITY FUND, menginformasikan beberapa perubahan yang akan dilakukan terhadap KIK dan Prospektus REKSA DANA SIMPAN SUSTAINABLE EQUITY FUND (“SIMPAN SUSTAINABLE EQUITY FUND”) terkait hal-hal sebagai berikut:

A. Perubahan susunan Tim Pengelola Investasi dalam Prospektus;

B. Perubahan ketentuan mengenai batas minimum pembelian Unit Penyertaan dari “sebesar Rp100.000,- (seratus ribu Rupiah) untuk setiap Pemegang Unit Penyertaan” menjadi “sebesar Rp10.000,- (sepuluh ribu Rupiah) untuk setiap Pemegang Unit Penyertaan”;

C. Perubahan ketentuan mengenai imbalan jasa Manajer Investasi dari “maksimum sebesar 3% (tiga persen) per tahun” menjadi “maksimum sebesar 5% (lima persen) per tahun”;

D. Penambahan fitur komersil sesuai dengan POJK Nomor 33 Tahun 2024 tanggal 19 Desember 2024 tentang Pengembangan dan Penguatan Pengelolaan Investasi di Pasar Modal, antara lain:
i. Penambahan fitur SIMPAN SUSTAINABLE EQUITY FUND menerima dan/atau memberikan pinjaman; dan
ii. Penambahan fitur opsi untuk berinvestasi pada Efek Reksa Dana Luar Negeri;

E. Penyesuaian ketentuan dalam KIK dan Prospektus terhadap Undang-Undang dan Peraturan Otoritas Jasa Keuangan (“POJK”), antara lain:
1. POJK Nomor 56/POJK.04/2020 tanggal 3 Desember 2020 tentang Pelaporan dan Pedoman Akuntansi Reksa Dana; dan
2. POJK Nomor 33 Tahun 2024 tanggal 19 Desember 2024 tentang Pengembangan dan Penguatan Pengelolaan Investasi di Pasar Modal;

F. Penyesuaian ketentuan-ketentuan dalam KIK dan Prospektus dengan kebijakan Otoritas Jasa Keuangan.

Rincian rencana perubahan KIK dan Prospektus dapat diperoleh di Manajer Investasi atau melalui website:

https://www.simpaninvest.com

Demikian pengumuman ini disampaikan kepada para Pemegang Unit Penyertaan REKSA DANA SIMPAN SUSTAINABLE EQUITY FUND serta pihak-pihak yang berkepentingan.

Jakarta, 2 April 2026
PT Simpan Asset Management

DBS Bank Tower, Lantai 17
Jl. Prof. Dr. Satrio No. 3–5
Jakarta Selatan 12940

Manajer Investasi berizin dan diawasi oleh Otoritas Jasa Keuangan

PT Simpan Asset Management, as the Investment Manager of SIMPAN BOND FUND, hereby informs several amendments to be made to the CIC and Prospectus of SIMPAN BOND FUND (“SIMPAN BOND FUND”) in relation to the following matters:

A. Changes to the composition of the Investment Management Team in the Prospectus;

B. Implementation of provisions related to Unit Classes (Multi-Share Class), with details as follows:

1. Issuance of SIMPAN BOND FUND Unit Classes as follows:

   • SIMPAN BOND FUND Class A; and

   • SIMPAN BOND FUND Income Class;

2. Amendments and/or additions to several definitions related to the multi-share class, including but not limited to definitions of Investment Switching Form, Unit Class, Net Asset Value, Unit Holder, Addition of New Unit Class, Public Offering of New Class, Unit, Unit Transaction Confirmation Letter, and Effective Date of New Unit Class;

3. Amendments to provisions regarding SIMPAN BOND FUND Units, including:
   (i) total Units offered for both SIMPAN BOND FUND and each Unit Class,
   (ii) segmentation of Unit Classes, and
   (iii) provisions on the addition of the number of Unit Classes and Units in each Class;

4. Amendments to procedures for Unit subscription, redemption, and switching, so that they apply to each Unit Class;

5. Amendments to the investment income distribution policy for each Unit Class;

6. Addition of a transitional provision stating that existing Unit Holders of SIMPAN BOND FUND will become Unit Holders of SIMPAN BOND FUND Class A without any change in the number of Units held; and

7. Addition of provisions regarding the addition and closure of Unit Classes;

C. Amendment to the minimum initial and subsequent subscription amount from “IDR 100,000 (one hundred thousand Rupiah) per Unit Holder” to “IDR 10,000 (ten thousand Rupiah) per Unit Holder”;

D. Amendment to the minimum redemption amount from “IDR 100,000 (one hundred thousand Rupiah) per transaction” to “IDR 10,000 (ten thousand Rupiah) per transaction”;

E. Amendment to the minimum switching amount from “IDR 100,000 (one hundred thousand Rupiah) per transaction” to “IDR 10,000 (ten thousand Rupiah) per transaction”;

F. Addition of commercial features in accordance with POJK No. 33 of 2024 dated 19 December 2024 regarding the Development and Strengthening of Investment Management in the Capital Market, including:
i. Addition of a feature allowing SIMPAN BOND FUND to receive and/or provide loans; and
ii. Addition of an option to invest in offshore mutual fund securities;

G. Alignment of provisions in the CIC and Prospectus with applicable laws and Financial Services Authority (“OJK”) regulations, including:

1. Addition of the definition of POJK No. 56/POJK.04/2020 dated 3 December 2020 regarding Mutual Fund Reporting and Accounting Guidelines; and

2. POJK No. 33 of 2024 dated 19 December 2024 regarding the Development and Strengthening of Investment Management in the Capital Market;

H. Adjustment of provisions in the CIC and Prospectus in accordance with OJK policies.

Further details of the proposed amendments to the CIC and Prospectus can be obtained from the Investment Manager or accessed via the Investment Manager’s website at:

https://www.simpaninvest.com

This announcement is hereby conveyed to all Unit Holders of SIMPAN BOND FUND and other relevant parties.

Jakarta, 2 April 2026
PT Simpan Asset Management
DBS Bank Tower, 17th Floor
Jl. Prof. Dr. Satrio No. 3–5
South Jakarta 12940

The Investment Manager is licensed and supervised by the Financial Services Authority.

RENCANA PERUBAHAN KONTRAK INVESTASI KOLEKTIF (“KIK”) DAN PROSPEKTUS REKSA DANA SIMPAN BOND FUND

PT Simpan Asset Management, selaku Manajer Investasi dari REKSA DANA SIMPAN BOND FUND, menginformasikan beberapa perubahan yang akan dilakukan terhadap KIK dan Prospektus REKSA DANA SIMPAN BOND FUND (“SIMPAN BOND FUND”) terkait hal-hal sebagai berikut:

A. Perubahan susunan Tim Pengelola Investasi dalam Prospektus;

B. Penerapan ketentuan terkait Kelas Unit Penyertaan (Multi Shareclass), dengan rincian sebagai berikut:
1. Penerbitan Kelas Unit Penyertaan SIMPAN BOND FUND sebagai berikut:
a. SIMPAN BOND FUND Kelas A; dan
b. SIMPAN BOND FUND Kelas Income;
2. Perubahan dan/atau penambahan beberapa definisi sehubungan dengan multi shareclass, antara lain definisi Formulir Pengalihan Investasi, Kelas Unit Penyertaan, Nilai Aktiva Bersih, Pemegang Unit Penyertaan, Penambahan Kelas Unit Penyertaan Baru, Penawaran Umum Kelas Baru, Unit Penyertaan, Surat Konfirmasi Transaksi Unit Penyertaan, dan Tanggal Penambahan Kelas Unit Penyertaan;
3. Perubahan ketentuan mengenai Unit Penyertaan SIMPAN BOND FUND, antara lain:
i. jumlah Unit Penyertaan yang ditawarkan, baik untuk SIMPAN BOND FUND maupun masing-masing Kelas Unit Penyertaan;
ii. segmentasi Kelas Unit Penyertaan; dan
iii. ketentuan mengenai penambahan jumlah Kelas Unit Penyertaan dan jumlah Unit Penyertaan masing-masing Kelas Unit Penyertaan;
4. Perubahan ketentuan tata cara pembelian Unit Penyertaan, penjualan kembali Unit Penyertaan, dan pengalihan investasi sehingga berlaku untuk masing-masing Kelas Unit Penyertaan;
5. Perubahan ketentuan kebijakan pembagian hasil investasi untuk masing-masing Kelas Unit Penyertaan;
6. Penambahan ketentuan peralihan bahwa Pemegang Unit Penyertaan yang telah memiliki Unit Penyertaan SIMPAN BOND FUND akan menjadi Pemegang Unit Penyertaan SIMPAN BOND FUND Kelas A tanpa perubahan jumlah kepemilikan; dan
7. Penambahan ketentuan mengenai penambahan dan penutupan Kelas Unit Penyertaan;

C. Perubahan ketentuan mengenai batas minimum pembelian awal dan selanjutnya Unit Penyertaan dari “sebesar Rp100.000,- (seratus ribu Rupiah) untuk setiap Pemegang Unit Penyertaan” menjadi “sebesar Rp10.000,- (sepuluh ribu Rupiah) untuk setiap Pemegang Unit Penyertaan”;

D. Perubahan ketentuan mengenai batas minimum penjualan kembali Unit Penyertaan dari “sebesar Rp100.000,- (seratus ribu Rupiah) untuk setiap transaksi” menjadi “sebesar Rp10.000,- (sepuluh ribu Rupiah) untuk setiap transaksi”;

E. Perubahan ketentuan mengenai batas minimum pengalihan investasi dari “sebesar Rp100.000,- (seratus ribu Rupiah) untuk setiap transaksi” menjadi “sebesar Rp10.000,- (sepuluh ribu Rupiah) untuk setiap transaksi”;

F. Penambahan fitur komersil sesuai dengan POJK Nomor 33 Tahun 2024 tanggal 19 Desember 2024 tentang Pengembangan dan Penguatan Pengelolaan Investasi di Pasar Modal, antara lain:
i. Penambahan fitur SIMPAN BOND FUND menerima dan/atau memberikan pinjaman; dan
ii. Penambahan fitur opsi untuk berinvestasi pada Efek Reksa Dana Luar Negeri;

G. Penyesuaian ketentuan dalam KIK dan Prospektus terhadap Undang-Undang dan Peraturan Otoritas Jasa Keuangan (“POJK”), antara lain:
1. POJK Nomor 56/POJK.04/2020 tanggal 3 Desember 2020 tentang Pelaporan dan Pedoman Akuntansi Reksa Dana; dan
2. POJK Nomor 33 Tahun 2024 tanggal 19 Desember 2024 tentang Pengembangan dan Penguatan Pengelolaan Investasi di Pasar Modal;

H. Penyesuaian ketentuan-ketentuan dalam KIK dan Prospektus dengan kebijakan Otoritas Jasa Keuangan.

Rincian rencana perubahan KIK dan Prospektus dapat diperoleh di Manajer Investasi atau melalui website:

https://www.simpaninvest.com

Demikian pengumuman ini disampaikan kepada para Pemegang Unit Penyertaan REKSA DANA SIMPAN BOND FUND serta pihak-pihak yang berkepentingan.

Jakarta, 2 April 2026
PT Simpan Asset Management

DBS Bank Tower, Lantai 17
Jl. Prof. Dr. Satrio No. 3–5
Jakarta Selatan 12940

Manajer Investasi berizin dan diawasi oleh Otoritas Jasa Keuangan

Over the Ramadan break, markets remained under pressure as geopolitical tensions in the Middle East continued to dominate headlines. Iran launched further missile attacks on Israel, even as President Donald Trump signaled efforts to initiate a peace plan to end the conflict.

These developments have driven further spikes in the oil market and continued volatility across equity markets, both globally and domestically. For investors, periods of market turmoil like this often prompt the question: what should I do with my portfolio: hold, buy the dip, or sell?

Volatility Can Create Opportunity

History shows that periods of heightened market stress often present compelling entry points. While sell-offs can feel uncomfortable, markets have typically recovered over time.

A recent example can be seen during the tariff-driven volatility in April last year. The VIX (volatility index) surged to around 50, reflecting elevated fear, and major U.S. indices fell to early-year lows. However, investors who stayed the course saw a strong rebound, with the S&P 500 eventually reaching new highs by year-end.

Where Are the Opportunities Today?

While the duration of the current conflict remains uncertain, certain sectors are showing resilience.

Since early 2026, our Investment Team at Simpan has anticipated a rise in geopolitical tensions and has taken necessary actions to position our portfolios accordingly. We have increased exposure to commodity-linked sectors especially coal, which tend to benefit from supply disruptions and rising resource prices, but have also been holding higher levels of cash.

Simpan’s Portfolio Positioning as of March 10, 2026

Our internal analysis of JCI sector performance across different oil price environments (since 2021) reinforces this view. When oil prices exceed USD 100 per barrel, the Energy sector has consistently emerged as the strongest performer across multiple time horizons. In the most recent cycle, the sector delivered approximately 29% forward returns over six months, highlighting its sensitivity to higher commodity prices.

Coal, in particular, remains a key area of focus. With Brent Crude Oil currently trading around USD $109 per barrel, inflationary pressures are rising—especially for oil-importing countries like Indonesia. As energy costs increase, demand for alternative sources such as coal tends to follow.

This trend is also reflected in market flows. In March, foreign investors recorded net outflows of approximately ~IDR 7.14T, largely concentrated in banking names such as BBCA, BBRI, BBNI, and BMRI. At the same time, inflows have been directed toward commodity-related stocks, including gold exposure (EMAS) and coal names such as AADI, ITMG, PTBA, and ADRO.

Portfolio Performance

As of March 27, our equity-oriented portfolios have declined on a year-to-date basis. However, they have still meaningfully outperformed the broader JCI, reflecting the effectiveness of our defensive positioning.

So, What Should You Do?

There is no simple answer. The trajectory and length of the conflict remains uncertain and beyond our control. What is within our control is our investment strategy and how we position portfolios in response.

For now, we recommend maintaining a cautious approach, holding a higher level of cash while gradually rotating into equities as opportunities arise. This allows investors to capture upside when the equity market recovers, without taking on too much risk as the situation is still evolving.

As we approach month-end, our AMP portfolios will undergo their scheduled rebalancing on the first trading day of April, incorporating recent market developments and our updated outlook.

For clients invested in AMP, we recommend staying invested and allowing our team to actively monitor the markets and manage the portfolio on your behalf. The updated allocation will be reflected in the Simpan app once the rebalancing is completed.

Over the past week, escalating geopolitical tensions in the Middle East, coupled with persistently elevated oil prices, have continued to weigh on global markets. Asian equities came under pressure, with the Jakarta Composite Index (JCI) declining by around -5% WoW (as of March 16, 2026).

Brent crude prices remain elevated at around USD 100 per barrel, reinforcing inflationary concerns across Asia—particularly for net oil-importing economies. Higher energy prices are likely to exert pressure on currencies and broader economic outlooks, as reflected in the Indonesian Rupiah, which has hovered near IDR 16,950/USD. Domestically, part of the recent market weakness can also be attributed to seasonal trends ahead of the Ramadan period, during which investors typically increase cash allocations.

Foreign investors remain net sellers, with net outflows of approximately IDR 1.05T over the past week. Notably, foreign inflows were concentrated in commodity-linked names such as EMAS, AADI, ITMG, and ADRO—sectors that have historically demonstrated resilience during periods of geopolitical uncertainty. On the other hand, outflows were concentrated towards banking stocks, including BBRI, BBCA, BMRI, and BBNI.

What’s Ahead?

Markets are closely monitoring the upcoming FOMC meeting scheduled for March 18. Investors will be paying particular attention to commentary from Fed Chair Jerome Powell regarding the impact of geopolitical developments and elevated energy prices on the U.S. economic outlook.

In the near term, continued volatility is likely as markets digest evolving macroeconomic and geopolitical dynamics.

How Did Our Funds Perform?

Amid the broader market sell-off, our equity-oriented portfolios experienced declines, though they continued to outperform the JCI.

What Has Simpan Done?

In light of heightened uncertainty, the Investment Team at Simpan has continued to take measured approaches. Ahead of the Ramadan holiday period, we have selectively trimmed positions and taken profits in names where our conviction has weakened given the shifting macro environment.

However, we retain strong conviction in commodity-related sectors—including coal, gold, and oil & gas—which we believe are well-positioned to outperform in an inflationary and geopolitically sensitive environment.

Our decision to hold higher levels of cash is a tactical move made in anticipation of market uncertainty during the Lebaran period. Once the market reopens following the holiday, we will carefully assess the situation to determine our ongoing investment strategy, and we’ll keep you updated along the way.

We wish you and your loved ones a blessed and peaceful Ramadan.

Escalating geopolitical tensions over the weekend have added further volatility to Indonesian markets. Over the weekend, President Donald Trump signaled plans to intensify attacks and Iran vowed to continue retaliatory strikes, which weakened risk sentiment significantly. As a result, the Jakarta Composite Index (JCI) declined further by -3.27% on Monday (March 9), with heightened uncertainty triggering broad-based selling among investors.

Concerns have also intensified around the Strait of Hormuz, a critical shipping route that carries roughly 20% of global oil supply. Fears of potential supply disruptions pushed Brent crude oil prices above USD $100 per barrel on Monday, raising the risk of inflationary pressures for economies such as Indonesia, which is a net oil importer. At the same time, the Rupiah briefly weakened beyond the 17,000 level against the US Dollar, reflecting rising geopolitical risk and capital market volatility.

Last night, President Donald Trump suggested that the U.S.–Israel conflict with Iran could end “very soon,” though his remarks were mixed, noting that “we have won in many ways, but not enough,” indicating that the situation remains unresolved. Following the comments, oil prices declined to around ~$90 per barrel, although they continue to trade at significantly higher levels compared to a few weeks ago. The JCI also rebounded slightly, closing Tuesday higher by +1.41%. That said, market conditions remain fragile, and both oil prices and equity markets have yet to fully stabilize amid ongoing geopolitical uncertainty.

Simpan’s Views

We have previously advised clients to brace for volatility as the situation continues to evolve. Our portfolio positioning remains the same. We are building higher cash levels where we see the need to, trimming exposure to positions that no longer align with the current investment landscape.

Our portfolio remains highly allocated towards the commodity sectors: particularly coal, gold, and oil & gas names. The existing allocations to energy and commodity producers already provide natural exposure to the areas of the market most directly affected by supply shocks and rising resource prices. This positioning allows the portfolio to participate in potential upside from commodity markets while also serving as a buffer against inflationary pressures that may arise from higher energy costs.

Our Investment Team has published a research paper discussing the evolving geopolitical landscape and the implications to commodities, Indonesian markets, as well as our portfolio positioning. Click here to read more.

Thank you for your continued trust.