03 July 2025
Stability
Indonesia’s bond market remained broadly stable in June 2025, supported by easing global risks and strong domestic liquidity. Ongoing diplomatic efforts in the Middle East, especially around the Strait of Hormuz, helped reduce geopolitical tensions and calm oil markets. The earlier spike in crude prices subsided, providing relief to inflation expectations and supporting demand for fixed-income assets, particularly in energy-importing countries like Indonesia. Additionally, the partial tariff rollback between the U.S. and China improved the global trade environment and helped stabilize investor sentiment toward emerging markets. For Indonesia, this translated into stable capital flows, a relatively firm rupiah, and continued foreign interest in sovereign bonds.
A key driver of bond market stability in June was ample domestic liquidity. Significant maturities from government bonds and Bank Indonesia’s SRBI instruments injected fresh cash into the system, providing strong reinvestment demand, especially from local banks and institutional investors. At the same time, the government introduced new fiscal support measures to counter soft household demand, while Bank Indonesia maintained its key rate at 5.5% as widely expected. Inflation remained within target, reinforcing the case for stable yields.
By the end of the month, 10-year government bond yields hovered around 6.5%, with the yield curve staying relatively steep. Indonesia’s bond market in June 2025 demonstrated resilience amid global and domestic shifts. Easing geopolitical tensions, improving trade dynamics, and strong onshore liquidity—driven by large maturities—provided a solid foundation for investor confidence. Looking ahead, bond performance will hinge on U.S. rate decisions, inflation dynamics, and the effectiveness of domestic fiscal support in sustaining growth momentum.
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 Email – [email protected]
Mandiri Investasi Website – www.mandiri-investasi.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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