11 March 2025
Pressured Move
As of February 2025, Indonesia’s domestic market is experiencing notable developments across economic, political and investment sectors. President Prabowo Subianto’s administration is implementing austerity measures, including Rp307trillion in budget cuts, to fund initiatives like the Danantara sovereign wealth fund and a free nutritious meal program for students. These measures have sparked nationwide protests and raised concerns about potential mismanagement and corruption. Despite these challenges, the government emphasizes transparency and adherence to international standards in managing the fund.
Launched on February 24, 2025, the Danantara fund aims to manage over $900 billion in state assets, including major state-owned enterprises like Bank Mandiri, Bank BRI, Bank BNI, Telkom Indonesia and Pertamina. The fund plans to invest in strategic projects across sectors such as renewable energy, advanced manufacturing, and artificial intelligence, with the goal of boosting Indonesia’s economic growth. Investment Minister Rosan Roeslani serves as the CEO, with Pandu Sjahrir as CIO and Donny Oskaria as COO.
On the other hand, certain sectors have faced negative sentiment, particularly the consumer non-cyclical sector, where rising commodity prices—such as coffee, cocoa, and CPO—are likely squeezing profit margins. The telecommunication sector continues to struggle with intense price competition in specific regions. Meanwhile, global investors remain cautious, closely monitoring macroeconomic developments, particularly as Trump’s tariff policy on Mexico and Canada is set to take effect soon. These tariffs are expected to increase costs, create uncertainty, and challenge US competitiveness, ultimately weighing on economic growth.
Looking ahead, we see silver linings in both global and domestic conditions. On the global front, the US is still negotiating with its trading partners to establish a new balance, which suggests that not all tariff threats may materialize, as the US still requires foreign investment. Domestically, Indonesia’s harvest season and the approaching fasting month are expected to drive higher consumer spending, boosting market activity. This could lead to an improvement in economic momentum in the coming months
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.
Written by
Leave a Reply