December 16, 2024

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2 minutes

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Investment & Research

Research

USD-IDR Hits 16,000, What’s Going On?

The Rupiah is sliding again, reaching 16,013 per U.S. Dollar as of December 16, 2024. This is one of the lowest levels we’ve seen since August.

So, what’s behind this? A big factor is the anticipation of another 0.25% rate cut by the U.S. Federal Reserve this Thursday. Additionally, better investment opportunities in developed markets, such as the U.S., are drawing investors away from emerging markets like Indonesia, triggering capital outflows.

Simpan Views

Where is the Rupiah Headed?
The outlook remains challenging. While we may see occasional recoveries, global uncertainties—like geopolitical risks and Trump’s pro-America economic policies—are likely to keep the Rupiah under pressure.

Our approach

In this environment, we continue to favor equities with strong U.S. Dollar exposure as they tend to remain resilient during times of currency volatility. Simpan Sustainable Equity Fund offers investors a solid path to stay committed to their long-term investment goals and grow their wealth steadily despite short-term market fluctuations.

Simpan Asset Management puts a dedicated team of experienced professionals at your service – your personal investment team. Leveraging their WMI qualifications, they meticulously analyze individual investments, economic factors, and industry trends every day. This in-depth research forms the foundation for our informed fund management decisions and insightful updates, keeping you informed and involved.

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Weekly Roundup

Ups and Downs in December

Investment & Research

The December market has been volatile due to foreign investor sell-offs and global economic uncertainties. Both the Fed and BI made rate decisions, with the Fed cutting rates and BI holding steady. While BI's decision aims to stabilize the Rupiah, the Fed's cuts are cautious due to persistent inflation. The market reacted negatively to these developments, leading to declines in both Indonesian and U.S. stocks and a weakening Rupiah. Simpan recommends a defensive investment strategy, focusing on non-discretionary consumption stocks, U.S. Dollar-exposed assets, and short-to-medium duration bonds. They emphasize the importance of staying invested and using a dollar-cost-averaging strategy for long-term growth.

Fund Updates

Monthly Investor Update November

Investment & Research

Our Cash Funds performed well, outpacing their benchmarks. While our other funds were impacted by significant foreign outflows from the Indonesian market, our Fixed Income investments continued to deliver positive returns. We're focusing on Indonesian government bonds, as we anticipate declining interest rates. For equities, we're waiting for a more favorable market environment and will continue to invest in momentum stocks to mitigate foreign outflow risks.