JAKARTA - PT Mirae Asset Sekuritas Indonesia recommends investors to consider investing in fixed income fund (bond fund) instruments that offer routine monthly passive income features.
Mirae Asset's Head of Wealth Management, M. Arief Maulana, explained that this instrument is considered suitable as a strategy for facing increasing economic volatility and capital markets.
According to him, the high macroeconomic uncertainty and the current increase in market volatility is the right momentum for investors to choose more stable investment instruments and provide regular income.
"The fixed income fund for monthly passive income (monthly passive income bond funds) is a strategic alternative, especially in the midst of high volatility and uncertainty like now," said Arief in Media Day: July 2025 by Mirae Asset, Tuesday, July 15.
Responding to current economic conditions, Head of Research & Chief Economist Mirae Asset Rully Arya Wisnubroto said that there was a fairly large capital outflow trend in the Indonesian stock market, although the Composite Stock Price Index (IHSG) still recorded a positive performance.
Meanwhile, the JCI was recorded to still strengthen to 7,091 from the position at the end of 7,079, when the flow of foreign funds moved out (foreign outflow) of IDR 57.9 trillion since the beginning of the year (year to date/ytd) until July 11, 2025.
Throughout July, foreign outflows have occurred amounting to IDR 4.3 trillion and this shows that domestic stock trading activity is supported by domestic investors.
On the other hand, the trend of bond prices is still showing an increase (and a decrease in yields/yield), in line with the large flow of foreign incoming funds (foreign inflow) which throughout July, recorded a net buy of IDR 17.2 trillion (month to date/mtd), or IDR 70 trillion (ytd).
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This trend was driven by the cutting of the Bank Indonesia (BI Rate) benchmark interest rate in the first semester of 2025 and the expectations of a decline in the Federal Funds Rate (FFR) by the Fed in the second semester of 2025.
Rully predicts that the BI Rate will be maintained at the level of 5.5 percent by the end of the year while waiting for adjustments from the banking sector to lower lending rates.
He also expects banking liquidity to be looser in the second semester of 2025, which could boost bond prices and lower yields, given the inverse link between prices and yields in the bond market.
"In the midst of Trump's pressure for the Fed to aggressively lower the FTR, we predict the US Central Bank will still try to be careful and see the development of economic data to determine how big and how fast the interest rate will drop in the future," he explained.
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