09 April 2025
Supportive Conditions
In March 2025, both global and Indonesian bond markets experienced notable fluctuations influenced by economic policies, geopolitical events, and investor sentiment. While global bond markets responded to inflation concerns, fiscal expansions, and central bank actions, Indonesia’s bond market navigated domestic challenges, including currency pressures and fiscal management adjustments.
The U.S. Federal Reserve maintained a cautious stance as inflationary pressures persisted despite a cooling labor market. Investors showed a preference for minimizing exposure to longer-duration assets amid economic uncertainty. Meanwhile, in Europe, Germany’s announcement of significant fiscal spending to support economic growth led to a surge in long-term bond yields across the Eurozone. The European Central Bank (ECB) explored policy adjustments to manage these yield discrepancies and stabilize regional financial conditions.
Indonesia’s 10-year government bond yield jumped to 7.19% before it ended 13 bps higher at 7% compared to end of February as global trade policy uncertainty and weakness amid capital ouflows from local market increased downside risk. The Indonesian rupiah faced depreciation pressures due to persistent capital outflows, driven by global economic uncertainties and the Federal Reserve’s cautious monetary easing approach. In response to liquidity concerns and the maturation of COVID-19 response bonds, Bank Indonesia (BI) announced plans to purchase an additional 150 trillion rupiah (approximately $9.3 billion) of government bonds from the secondary market. This intervention aimed to maintain stability and ensure sufficient market liquidity.
Rumors surrounding the potential resignation of Finance Minister Sri Mulyani Indrawati created temporary market unease. However, she publicly reaffirmed her commitment to fiscal discipline and ongoing economic reforms, which helped stabilize investor sentiment. Her presence in the government remained a key factor in maintaining confidence in Indonesia’s economic policies, particularly in the bond market.
Overall, March 2025 presented a complex landscape for global and domestic bond markets. While global economic shifts influenced yield movements, Indonesia’s prudent fiscal policies and proactive interventions by Bank Indonesia contributed to market stability. However, currency depreciation and external risks remained key challenges for investors navigating the evolving financial landscape
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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