11 March 2025
Re-allocation
As of February 2025, the U.S. bond market saw significant activity amid economic policy uncertainties. Despite the Economic Policy Uncertainty Index reaching record-high levels comparable to the pandemic era, bond market volatility remained low, with the MOVE Index at its lowest in nearly three years. This indicates a cautious investor stance as they evaluate President Trump’s policy direction. Meanwhile, the 10-year Treasury yield dropping nearly 30 basis points, driven by weaker economic data and a shift from risk-on to risk-averse investment strategies.
Indonesia’s bond market also witnessed notable developments in February 2025, influenced by government initiatives and central bank policies. Indonesian government launched the sovereign wealth fund, Danantara, on February 24, 2025, aims to manage over $900 billion in state assets, including key state-owned enterprises. President Prabowo Subianto has allocated $20 billion for initial investments, with the government emphasizing a commercial approach and ensuring transparency through audits to address public concerns.
In addition, the government plans to issue bonds to support affordable housing projects in line with President Prabowo’s commitment to building 3 million low-cost homes annually. Bank Indonesia (BI) has pledged its support by purchasing government bonds in the secondary market. Furthermore, BI has eased banking reserve requirements for property sector loans, unlocking Rp80 trillion in liquidity for housing loans.
Overall, Indonesia’s government bond yields remained stable, maintaining a healthy yield spread. These developments highlight a dynamic phase in the bond market, driven by strategic government initiatives and proactive central bank policies aimed at fostering economic growth and strengthening investor confidence.
Product Recommendation
| FIXED INCOME FUND | |
|---|---|
| MIDU | MIDU invests in Bond Instruments with a Medium-Term segment and is categorized as low to medium risk. Investors bear the risk associated with the Bond Portfolio. |
| IDAMAN | IDAMAN invests in Indonesian Government USD Bonds with a short duration and is categorized as medium risk. Investors bear the risk associated with the Bond Portfolio. |
| MIDO2 | MIDO2 invests in Indonesian Government Rupiah Bonds with a long duration and is categorized as high risk. Investors bear the risk associated with the Bond Portfolio. |
| BALANCED FUND | |
| MIA | MIA invests in Equities, Bonds and Money Market with Medium Term and categorized Medium Risk. Investors bear the risk associated with the equity portfolio. |
| MISB | MISB invests in Sharia Equities, Sukuk and Money Market Sharia with Medium Term and categorized Medium Risk. Investors bear the risk associated with the equity portfolio. |
For More Information
Contact Mandiri Investasi – (021) 526 3505
Mandiri Investasi Whatsapp – 0816 86 0003
Mandiri Investasi Email – [email protected]
Mandiri Investasi Website – www.mandiri-investasi.co.id
Moinves Website – www.moinves.co.id
DISCLAIMER
The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for individuals or specific mutual fund or investment products. It is intended solely to provide education about the financial industry. Views reflected in the content may change at any time without notice. All performance data and investment returns mentioned in this article cannot be used as a basis for calculation to buy or sell a mutual fund. This data is performance records based on historical data and is not a guarantee of future mutual fund performance. Investment through mutual funds carries risks. Investors are required to read and understand the prospectus before deciding to invest through mutual funds.
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