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.

February was a volatile month across equities, with the Jakarta Composite Index (JCI) closing out lower by -1.08% MoM. Through our February Monthly Investor Update, we discuss market highlights, how our funds performed, our outlook ahead, and how we’re positioning portfolios.

First, let’s briefly recap what happened across markets in February:

• The JCI rebounded in initial weeks but market sentiment weakened towards month-end, due to rising geopolitical tensions in the Middle East, continued Rupiah weakness, and lack of clarity around MSCI-related issues.

• Despite broader market weakness, the blue-chip index IDX30 closed out higher by ~+2%, suggesting that weakness in the JCI was primarily driven by momentum stocks.

• BI kept rates unchanged at 4.75%, primarily to support the Rupiah which has seen ongoing weakness (edged closer to ~17,000 USD/IDR), driven by heightened global financial uncertainty.

• Moody’s downgraded Indonesia’s credit outlook from “Stable” to “Negative”, largely due to growing warnings about policy uncertainty around Danantara & fiscal policy direction. The news caused a wave of selling across equities and bonds, with 5Y and 10Y yields spiking.

Amid volatility, how did our funds perform?

Despite broader market weakness, all our funds delivered positive performance in February, although our Equity Fund and Bond Fund underperformed benchmarks.

Although the JCI corrected, our equity portfolios gained, as we realized profits opportunistically in names that have seen a sharp run up, particularly within the nickel sector. All our AMP portfolios also saw gains, though risk 2 - 5 portfolios slightly underperformed benchmarks.

For a closer look at the specific stocks we bought or sold, read our February Monthly Investor Update.

In Fixed Income, 10Y and 5Y yields traded higher, with foreign ownership stable at roughly 13% of total issuance.

Simpan’s Views

With the ongoing geopolitical tensions, we expect markets to remain volatile in the near-term. We also expect uncertainties surrounding MSCI policy changes to further weigh on investor sentiment. Furthermore, rising oil prices following the closure of the Strait of Hormuz pose inflationary risks for Indonesia, a net oil importer, which could widen the fiscal deficit and place additional pressure on the Rupiah.

Amid ongoing equity volatility, we are adopting a “risk-off” stance, focusing on increasing exposure to commodity-linked stocks such as gold, coal, and oil & gas, given their earnings resilience and effectiveness as hedges against macro and market volatility.

Though we expect a bearish outlook for March, the recent correction has made equity valuations more compelling, allowing us to gradually increase allocation to equities for some of our AMP portfolios (risk 3 – 5). However, we remain cautious and are not positioning aggressively yet, as we continue to monitor developments closely while the situation evolves.

In Fixed Income, we plan to gradually extend duration further, but are also staying cautious in the near-term due to inflationary pressure risks from higher oil prices, possible yield shocks in the government bond market driven by widening fiscal deficit concerns, and the persistence of elevated interest rates.

Thank you for your continued trust.

We are pleased to present our January Monthly Investor Update, discussing market highlights during the month, our funds’ performance, and our outlook ahead.

January Market Recap

• The Jakarta Composite Index (JCI) hit a record high but reversed sharply toward month end after MSCI warned of a potential downgrade of Indonesia to Frontier Market status if transparency issues persist. The sell-off, led by conglomerate stocks, pushed the index down 4% MoM.

• Amid geopolitical tensions, investors rushed to safe-haven assets, pushing gold & silver to all-time highs. However, prices dropped sharply after the announcement of Kevin Warsh as the new Fed Chair boosted the US Dollar.

• BI kept rates unchanged at 4.75% to support the Rupiah given ongoing weakness. The Fed also kept rates steady at 3.5% - 3.75% due to softening inflation and cooling labor market.

Simpan’s Funds Performance

• Money Market: Continued to deliver positive and stable returns, outperforming benchmark.

• Equities: Began the period with solid performance but saw weakness toward month-end, impacted by a sudden change in MSCI’s rebalancing criteria.

• Fixed Income: 5Y and 10Y yields moved higher in January, with foreign ownership stable at ~13% of total issuance.

Key Trades of The Month

Our Outlook Ahead

We expect consumption to gradually strengthen in the first quarter in light of the Lebaran holidays. That said, we remain cautious regarding potential changes to MSCI’s index criteria, which could keep the JCI vulnerable in the near term.

Portfolio Positioning

Fixed Income: We are currently maintaining the portfolio duration broadly in line with the benchmark, while remaining prepared to gradually extend duration as higher yields present more attractive entry points.

Equities: We continue to closely monitor market conditions and remain positioned to act decisively should the investment environment change. We had anticipated a market correction following JCI’s strong rally and maintained a cash buffer, reallocating capital toward high-quality blue-chip stocks.

We are pleased to present our December Monthly Investor Update, discussing market highlights during the month, our funds’ performance, and our outlook ahead.

December Market Recap

• The Fed cut rates by 25 bps due to rising unemployment, while BI kept rates unchanged at 4.75%. Click here to find out why.

• The Jakarta Composite Index (JCI) saw some volatility from profit-taking, but closed out higher by +1.26% MoM. Gains remain concentrated in momentum stocks, while blue-chips stayed quiet.

• Bank of Japan (BOJ) raised rates to a 30-year high, marking a step towards policy normalization due to rising inflation. The decision triggered a sell-off in bonds, with yields reaching 26-year highs.

Simpan’s Fund Performance

All funds had positive performance in December, with all outperforming benchmarks except for the Bond Fund.

• Money Market: Positive and stable returns, outperformed benchmark.

• Equities: Strong gains due to our exposure to momentum names and active position management, which allowed us to capture upside while controlling risk.

• Fixed Income: Gained slightly, but underperformed benchmark due to our conservative duration positioning.

Key Trades of the Month

Below is a quick snapshot of our key trades during the month. For the full story behind each move, check out our December Monthly Investor Update.

Our Outlook

In January, we maintain a constructive outlook but remain aware of near-term risks. Seasonal patterns in January indicate stronger equity performance; however, a potential uptick in December inflation from stronger consumption could constrain BI’s policy flexibility. Globally, we are watching out for U.S. labour market and inflation data, which will be key in shaping the Fed’s decision.

Here’s how we’re positioning our portfolios:

Fixed Income: Continue to keep our portfolio duration conservative and below the benchmark duration, due to rising fiscal deficit risk.

Equities: Have locked in gains from recent rallies and are keeping higher levels of cash. We remain confident in high-quality blue-chips, but selective on momentum stocks.

• JCI extended its rally and reached a new high, driven by momentum stocks amid the recent MSCI rebalancing which drew renewed foreign interest on new constituents that had been added to the index.

• Blue-chips stayed quiet, with limited flows as foreign investors remain cautious about Indonesia’s new political environment.

• BI kept rates steady at 4.75%. Click here to find out why.

  

  Simpan’s Fund Performance

All funds outperformed benchmarks in November, except for our Bond Fund.

• Money Market: Positive and stable returns, outperformed benchmark.

• Equities: Strong gains due to our exposure to select momentum names which saw meaningful flows.

• Fixed Income: Down slightly, but still outperformed the benchmark due to our off-benchmark holdings which provided resilience.

Below is a quick snapshot of our key trades during the month. For the full story behind each move, check out our November Monthly Report.

Or click here for the Indonesian version.

Our Outlook

We expect the Fed and BI to continue their monetary easing in December. Though we expect this to provide a constructive backdrop for global and domestic markets, we also anticipate some profit-taking as investors usually take a more defensive stance and hold a higher cash balance towards year-end.

Here’s how we’re positioning our portfolios:

Fixed Income: Continue to keep our portfolio duration conservative and slightly below the benchmark duration.

Equities: Tactically rotating into momentum stocks to capture opportunities and upside.

In October, Indonesian markets continued to rally in initial weeks, with the Jakarta Composite Index (JCI) climbing to a new high of 8,354, lifted by strong gains in conglomerate stocks. Toward month-end, however, markets took a turn. The JCI saw a sharp pullback, driven by broad profit-taking in conglomerate stocks, renewed U.S.–China trade tensions, and MSCI’s plan to tighten index rules.

Investor appetite shifted to blue-chip stocks following BBCA’s strong earnings and attractive sector valuations, which drew renewed foreign inflows. Meanwhile, Bank Indonesia kept rates steady at 4.75% to support the Rupiah, while the U.S. Fed delivered another rate cut to keep growth on track.

How Our Funds Performed

All of our funds delivered positive returns in October, although some lagged benchmarks.

• Money Market: Continued to outperform benchmarks and deliver stable returns.

• Equities: Positive momentum amid notable rotation into blue-chip stocks.

• Fixed Income: Remained stable despite ongoing foreign outflows.

Below is a quick snapshot of our key trades during the month. For the full story behind each move, check out our October Monthly Report.

Or click here for the Indonesian version.

Looking Ahead: Our Outlook and Game Plan

Looking ahead, we expect equities to outperform, given positive catalysts like supportive policies from the MoF and BI, as well as the recent Fed rate cut.

• Fixed Income: Continue to stay cautious, favoring high yield bonds.

• Equities: Continue leaning towards blue-chip stocks, while being more selective with momentum stocks.

• Markets swung from panic to record highs after policy boosts and rate cuts.

• Fund performance was mixed — money market steady, equities lagged.

• We’re staying selective, favoring high-yield bonds and blue-chip stocks for long-term value.

To access the full report, click here.

September’s Market Recap: From Panic to a Record High

September was a wild month for markets. A cabinet reshuffle — including the replacement of Finance Minister Sri Mulyani — initially sparked panic, sending the Rupiah lower and the JCI down -1.3% in a day.

But sentiment flipped fast after the new Finance Minister announced a IDR 200T liquidity boost and Bank Indonesia followed with a rate cut, alongside the Fed. As these moves were intended to boost economic growth, investors cheered and the JCI rallied, hitting record highs.

Here’s the catch: the rally was not even. Although the JCI rallied, the chart below shows that the IDX30 (an index that tracks blue-chip stocks) lagged behind. Since the JCI contains both blue-chips and momentum stocks, the widening gap implies that the rally was led by momentum names.

How Our Funds Performed

Our funds traded mixed in September. Here’s the quick breakdown:

• Money Market: Delivered stable and positive returns, outperforming benchmarks.

• Equities: Lagged. Though the JCI rallied, much of the action was driven by momentum stocks outside our portfolio.

• Fixed Income (Bond Fund): Mixed performance – 10Y yields went up, but 5Y tenor declined.

Looking Ahead: Our Outlook and Game Plan

Given the positive catalysts in September, we expect stocks and bonds to benefit as confidence improves.

• Fixed Income: Staying cautious — With foreigners still selling and the Rupiah under pressure, we’re focusing on bonds that pay higher interest while avoiding too much risk on longer maturities.

• Equities: Gradually adding blue-chip stocks with solid fundamentals, while being selective on momentum names after their sharp run-up.

Thank you for keeping up-to-date with our investing and market insights. We are at your service. Should you need any assistance in opening an account, contact us here.

Monthly Market Recap

Indonesia’s economy grew 5.12% in 2Q25, faster than the previous quarter, thanks to strong investment and steady household spending.

In the US, core inflation edged up to 3.1%, mostly due to higher housing costs, while growth bounced back strongly with GDP up 3.3% after contracting in Q1.

Back home, Bank Indonesia surprised with a rate cut to 5.00% to support growth, as the Rupiah held firm around 16,200 per US dollar.

Toward the end of August, sudden political and social unrest hit local markets, triggering sell-offs in equities and bonds—though interestingly, the Rupiah strengthened against the dollar.

What This Means for Your Portfolios

In Fixed-Income, we are implementing a medium-to-long duration strategy to capture attractive yields and potential capital gains. Our focus remains on mid-tenor bonds, which provide a favorable balance between risk and return, while we maintain a selective and cautious approach toward longer-dated maturities.

In Equities, we continue to realign the fund toward foreign-proxy names, focusing on high-quality blue-chip stocks, as foreign investors’ aggressive buying is expected to drive valuations higher. While momentum-driven names remain appealing, we see the need for greater selectivity given the gradual rotation of domestic liquidity toward blue-chip counters.

Market Outlook

We expect recent domestic unrest to ease, keeping the economy broadly stable, with a possible BI rate cut ahead to support the Rupiah and growth. Globally, the Fed is likely to start easing in 3Q25, but Trump’s proposed tariffs could add fresh uncertainty to the trade outlook.

Thank you for your continued trust.

Read the full report in English here.

Baca laporan selengkapnya di sini.

Monthly Market Recap

• Bank Indonesia surprised markets with its third rate cut this year, lowering the BI rate to 5.25% amid stable inflation and early growth warnings.

• US inflation rose in June, with signs Trump’s tariffs are reaching consumers. Meanwhile, US Fed kept rates unchanged, citing low unemployment, persistent inflation, and ongoing uncertainty. The US economy rebounded in Q2 2025, growing 3% after a Q1 contraction, helped by lower imports and steady consumer spending.

Portfolio Positioning

Fixed Income

We’re focusing on mid-tenor bonds for their strong risk–return balance, while staying selective with longer maturities. This medium-to-long duration approach aims to capture attractive yields and potential capital gains.

Equities

Recent equity outperformance show our strategy is working. We aim to maintain the same performance trajectory, balancing momentum-driven names with high-quality blue-chip stocks.

Our Outlook

Looking ahead, we expect Indonesia’s economy to stay stable, supported by gradual Bank Indonesia rate cuts aimed at growth while safeguarding the Rupiah. Globally, the Fed is projected to start easing in 3Q25 with two cuts by year-end. We’re also watching the potential impact of Trump’s proposed tariffs, which could shape Fed policy and global trade dynamics.

Thank you for your continued trust, and we look forward to delivering strong results together in the months ahead. Hopefully useful.

Read the full report in English here.

Baca laporan selengkapnya dalam Bahasa Indonesia di sini.

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In June, our Bond Fund, Cash Fund, and Cash Syariah Fund delivered positive returns and outperformed their benchmarks.

• Equities generated negative returns amid the Fed’s gloomy outlook on the U.S. economy and geopolitical uncertainties, which drove foreign outflows. The JCI retreated by 3.46%

• Meanwhile, domestic investors remained active in mid-cap momentum stocks. The Rupiah stayed stable between 16,200–16,300.

• Government bonds rallied with lower yields across tenors, despite foreign outflows, benefiting our medium-to-long-duration positioning. We remain selective across asset classes, focusing on strong fundamentals, attractive valuations, and tactical opportunities.

🔭 What you need to know

1. Bank Indonesia and the Fed held their benchmark rates steady at 5.5% and 4.5%, respectively.

2. The Fed remains cautious, watching inflation and labor data amid new tariffs; two rate cuts are still possible this year.

3. BI’s pause after May’s rate cut aims to support growth while maintaining rupiah stability.

4. Markets were shaken in mid-June by brief Iran-Israel tensions, which spiked oil prices and boosted demand for safe-haven assets.

5. Going forward, we will closely monitor global trade shifts and U.S. economic data, as these will influence Fed and BI policy decisions and drive capital flows.

📊 What This Means for Your Portfolio

‍Fixed Income

Our preference remains with mid-tenor bonds due to their favorable risk-return profile, while we continue to take a selective and cautious approach toward longer-dated maturities.

Equities

We like balancing momentum-driven names with high-quality blue-chip stocks. We continue to take a more proactive approach finding stocks with relatively stable liquidity and consistent growth potential.

Thank you for your continued trust.

Read the full report in English here.

Baca laporan selengkapnya dalam Bahasa Indonesia di sini.

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📊 It was a strong month all around. Our Balanced Fund (BLF), Cash Fund (CF), and Cash Syariah Fund (CSF) each posted positive returns and outperformed their respective benchmarks. This was driven by a robust rally in the Jakarta Composite Index (JCI), supported by strong foreign inflows, improved domestic liquidity, and a rate cut from Bank Indonesia.

Read our full investor update here.

What You Need to Know

1. The JCI rose 5.04%, lifted by blue-chip and large-cap stocks as foreign investors became net buyers for the first time this year. The Rupiah also gained strength, appreciating to 16,286/USD.‍

2. In Fixed Income, bond yields moved slightly lower. The 10-year yield dipped to 6.84%, while the 5-year dropped around 19 bps. Foreign ownership of government bonds rose by IDR 21 trillion, reaching 15% of the market.

3. On the macro front, Indonesia’s GDP growth slowed to 4.87% YoY, while the Fed held rates steady amid global trade uncertainty. Meanwhile, Bank Indonesia cut its rate by 25 bps to 5.50%, aiming to support growth and currency stability. A 90-day U.S.–China trade truce also helped lift global market sentiment.

What This Means for Your Portfolio

Fixed Income

We maintain our duration target and aim to stay fully invested by focusing on short-to-medium-term bonds that offer attractive current yields and strong accrual potential. Looking ahead, we remain selective and guided by data before making any decisions to extend our duration exposure.

Equities

The fund’s strategy remains largely intact, benefiting from the JCI’s strong performance driven by foreign inflows. We continue to increase exposure to momentum-driven stocks with robust liquidity while maintaining high-quality blue-chip names that could attract foreign investors. This dual approach positions the fund for both resilience and upside potential.

Read the full report in English here.

Baca laporan lengkapnya di sini.

In April, all our funds outperformed their benchmarks. Read the full report here.

Market Performance

Markets started weak after Trump’s tariff announcement, but sentiment quickly improved once he delayed the tariffs. This helped Indonesian equities rebound, with the JCI rising 3.9%, driven mainly by blue-chip stocks. Domestic investors were the key players in this rally, supported by strong local liquidity.

Fixed Income Market

In Fixed Income, government bonds performed well, with the 10-year yield dropping from 7.00% to 6.88%. Foreign investors added Rp 8 trillion, signaling renewed confidence despite Rupiah volatility.

Market Outlook

Indonesia’s inflation rose to 1.95%, still within Bank Indonesia’s target range. We expect BI to keep rates steady for now. Globally, the U.S. economy contracted, and trade policy uncertainty continues to affect sentiment. The Fed is taking a cautious approach, and many foreign investors are rotating into safe assets like gold.

Our Positioning

In Fixed Income, we remain focused on short-to-mid-term bonds with attractive yields. For equities, we continue to increase exposure to strong local businesses, especially momentum stocks and high-quality blue-chip names that could attract foreign interest as global sentiment improves.

Thank you for your continued trust.

Read the English version of the full report here

Baca laporan lengkap versi Bahasa Indonesia di sini

In March our Cash Fund (CF), and Cash Fund Syariah (CFS) outperformed. Read our full investor update here.

‍What You Need to Know

1. The JCI rebounded by 3.8%, attributed largely to blue-chip and a number of large-cap stocks. However, plaguing domestic issues relatively muted the rebound from February’s significant outflows. Therefore, our conviction towards companies with strong domestic fundamentals and attractively valued blue-chip stocks determined our equity strategy.

2. Government Bond yields were volatile, increasing to 7.00%. Rupiah remained relatively stable while foreign investors added holdings. As the yield spread tightens, we continue to favor mid-tenor bonds, which offer attractive current yields.

3. In the U.S., February’s core PCE inflation rose to 2.8%, beating expectations. However, we believe April’s CPI reading should give us more clarity on Trump’s tariff impacts before any rate-related decisions.

4. Trump’s April reciprocal tariff announcement turned out to be the global markets’ worst-case scenario. As a result, US Treasury (UST) long-term yields increased to a YTD high. Fears revolving around re-inflation startled market participants (i.e. China and/or Japan), which likely triggered a selloff. If a selloff continues, we see signs of a broader shift away from US investments.

What This Means for Our Portfolio

• In Fixed Income, maintain our duration target and aim to be fully invested by focusing on short-to-medium bonds with high current yields to capture better accrued interest. We believe there is a more favorable risk-reward balance in mid-tenor yields.

• In Equities, we are exploring greater exposure to domestic-focused businesses, given uncertain global macro conditions for equities. Our emphasis on attractively valued companies proved beneficial against momentum in February. We may increase momentum holdings upon improved flows. Our strategy favors domestic stability over volatile external sentiment.

Access the English version of the full report here.

Access the Indonesian version of the full report here.

What You Need to Know

1. The JCI fell -11.8% in February, largely driven by foreign outflows from blue-chip stocks. Key factors behind the sell-off included MSCI index rebalancing, governance concerns surrounding Danantara (the state’s new sovereign wealth fund), deepening corruption scandals, and Trump’s escalating tariff policies.

2. These pressures contributed to the Rupiah weakening to an all-time low against the USD. Despite the sharp decline, we view this correction as sentiment-driven, not reflective of underlying fundamentals.

3. To stabilize the Rupiah, Bank Indonesia intervened by purchasing bonds in the secondary market, leading to a bond price rally. The 10-year government bond yield fell to 6.91% from 6.99%, after peaking at 7.06% earlier in the month. Despite a 2% Rupiah depreciation, foreign investors increased their holdings by Rp. 8.86 trillion, maintaining approximately 14% of total outstanding issuance.

What This Means for Your Portfolio

• ‍Fixed Income: We reduced portfolio duration by selling longer-term bonds, focusing on high-yield opportunities to capture accrued interest. With better risk-reward in shorter-tenor yields, we are maintaining a conservative stance while monitoring further developments.

• Equities: February’s market correction allowed us to increase exposure to quality blue chips at attractive valuations. We funded this by trimming defensive stocks and adopting a tactical approach to market volatility. Across our Balanced Funds, we have increased equity allocation, seizing opportunities in blue chips and momentum-driven stocks.

Access the English version of the full report here.

Access the Indonesian version of the full report here.

January was a decent month overall, with our stock and short-term bond strategies doing well. However, our Bond Fund struggled a bit – largely due to the Rupiah's volatility. This volatility stemmed from uncertainty around US trade policy, which, as you know, can have ripple effects across global markets.

Speaking of stocks, the Indonesian market (JCI) saw a small gain, boosted by interest rate cuts from the central bank. Lower rates are generally good for stocks, but we're still keeping an eye on things, especially with potential US policy changes on the horizon. On the bond side, we saw some ups and downs, but it's encouraging that foreign investors continue to see value in Indonesian government debt.

Market Outlook & Portfolio Positioning

Looking ahead, we're anticipating continued weakness in Indonesian consumer spending. This ties in with the low inflation numbers we've seen, partly driven by things like electricity discounts. The central bank might cut rates again to stimulate growth, but that could put further pressure on the Rupiah, which is something we're watching closely. In the US, the Fed seems likely to hold rates steady for now, given the current economic picture.

So, how does this all translate into our investment strategy? In fixed income, we're taking some profits and focusing on higher-yielding bonds. And in equities, we've shifted towards more stable, dividend-paying companies to weather any potential market turbulence. We're basically positioning ourselves to be a bit more defensive, given the uncertainties around trade policy and the potential for further Rupiah weakness.

Access the English version of the full report here.

Access the Indonesian version of the full report here.

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