DPLK Avrist Reveals Impact of Bonds Amid Interest Rate Volatility - Financial Business

Bisnis.com, JAKARTA — The Financial Institution Pension Fund or DPLK Avrist has revealed several impacts of rising or falling interest rates on investment instruments such as bonds. President Director of DPLK Avrist, Firmansyah, stated that its current portfolio is dominated by money market instruments and bonds. Therefore, changes in interest rates are a factor that is actively monitored. Firmansyah explained that if interest rates rise, the yield on new instruments will be more attractive and existing bonds may experience price adjustments. However, he added, reinvestment opportunities become better in the medium term. “If interest rates fall, bonds have the potential to provide capital gains. However, the yield on new instruments becomes lower,” he said, quoted on Tuesday (24/3/2026). Therefore, he emphasised that DPLK Avrist’s strategy is to maintain a balance between yield stability and liquidity flexibility through bond duration management and placement in high-quality instruments. To keep investment returns optimal, Firmansyah revealed that the company focuses on three main aspects. First, providing investment package options according to participants’ risk profiles. “We provide several investment package options from conservative to moderate so that participants can adjust to their retirement horizon,” he said. Second, he continued, focus on the quality of investment assets. DPLK Avrist emphasises bond credit quality, yield stability, and liquidity rather than chasing high-risk high returns. Third, he added, actively monitoring fund performance. The company conducts periodic evaluations of portfolio performance and market conditions to ensure investment positioning remains optimal. “This approach aligns with our philosophy that pension funds must be managed prudently, consistently, and sustainably,” Firmansyah stated. It is known that the Financial Services Authority (OJK) has stated that global financial market dynamics have the potential to affect the investment performance of the pension fund industry in 2026. This includes the possibility of declining returns following changes in interest rate direction. In response to this, DPLK Avrist confirmed that global market dynamics and changes in interest rate direction have the potential to affect the investment performance of the pension fund industry. Nevertheless, Firmansyah assessed that the impact is relatively more manageable because its investment model is based on participant-directed investments. “Where fund placement is focused on prudent instruments such as money market and fixed income,” he said. In addition, he continued, pension funds have long-term investment characteristics, so short-term volatility does not necessarily become a fundamental risk, but rather part of the market cycle that must be managed disciplinedly. “We see this situation as reinforcing the importance of conservative investment management, strong risk governance, and transparency to participants in choosing investment profiles that suit their needs,” he stressed. On the other hand, he explained, DPLK Avrist emphasised that investment results are indeed one of the components forming pension benefits. However, what is more determining in the long term is the consistency of contributions and investment discipline. “As pension fund managers, our priority is not to chase the highest returns, but to ensure participants’ funds grow healthily, stably, and sustainably. Our philosophy is simple: good returns are sustainable returns,” he concluded.