09 December 2025
After a strong rally on October 16, when the 10-year yield reached 5.92%, the Indonesian bond market entered a sell-off heading into November, with the 10-year yield rising to 6.30%. Trading activity was concentrated in short- to medium-tenor government bonds, while yields on long-end series remained relatively stagnant with low volatility.
In November, the Fed had no scheduled meetings, while Bank Indonesia kept its benchmark rate unchanged at 4.75%. BI maintained the policy rate to support Rupiah stability amid persistent global uncertainty and to sustain foreign capital inflows. The central bank also indicated that there is room for further rate cuts should inflation remain within target and the Rupiah show improved stability.
The Fed is widely expected to cut the FFR by 25 bps in December, with BI likely to follow. Against this backdrop of yield corrections and three remaining Ministry of Finance auctions in December—two SUN and one SBSN—any reduction in issuance relative to the original plan could surprise the market. Should the MoF proceed with fewer-than-scheduled auctions, the current environment may offer an attractive opportunity to enter the domestic bond market, particularly as the 10-year yield is trading above 6%.
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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