05 May 2025
The Comeback
April 2025 saw heightened global trade tensions as the United States expanded its tariff measures, imposing a 10% tariff on imports from most countries while maintaining an extraordinary 125% tariff on Chinese goods. This aggressive tariff policy, justified by the US under national security grounds, triggered strong retaliation from China, which imposed a 125% tariff on all US goods, restricted exports of critical rare earth minerals, and intensified regulatory scrutiny on American companies. These tit-for-tat actions deepened uncertainties in global markets and complicated international trade relations.
On the diplomatic front, Indonesia engaged in ongoing trade negotiations with the United States to mitigate the impact of escalating tariffs and to explore opportunities for enhanced bilateral cooperation. While these talks were still in early stages and expected to take time, they reflected Indonesia’s strategic approach to balancing relations with both global superpowers amid the trade war tensions.
In this challenging global environment, Indonesia’s equity market demonstrated resilience. The Indonesia Stock Exchange’s main index, the IHSG, rose 3.93% over April, closing at 6,766 points. The market was supported by strong performances from several large-cap stocks and a positive sentiment driven partly by the temporary de-escalation of US tariff threats. Despite ongoing concerns about global supply chain disruptions and inflationary pressures, Indonesian equities outperformed many regional peers in April, buoyed by domestic economic stability and investor optimism.
Corporate earnings in Indonesia for the first quarter of 2025 showed mixed but generally positive results. Key companies such as Bank Central Asia reported solid growth, with BCA’s net profit rising nearly 10% year-on-year supported by robust loan growth. Other sectors, including consumer goods and infrastructure, also posted encouraging performances despite the challenging global backdrop. However, some exporters and companies reliant on imported inputs faced margin pressures due to higher costs stemming from tariffs and supply chain uncertainties.
Product Recommendation
| EQUITY FUND | |
|---|---|
| MITRA A | MITRA invests in majority domestic stocks, with a focus on Big Cap stocks. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity portfolio. |
| MICB A | MICB primarily invests in stocks included in the LQ45 index. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity 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. |
| EQUITY INDEX AND ETF FUND | |
| FTSE ESG A | FTSEESG primarily invests in stocks included in the FTSE Indonesia ESG Index. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity portfolio. |
| XMLF | Mandiri ETF LQ45 is an ETF that invests in blue-chip stocks listed in the LQ45 Index. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the portfolio of these stocks. |
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
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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