Preferred Instruments for Major Investors Amid Market Risk

Amid geopolitical and global economic turmoil, as well as index provider assessments of Indonesia’s financial market, Ashmore Asset Management Director Steven Satya Yudha believes investment in Indonesia’s financial market remains highly promising. In terms of yield, government bonds (SBN) offer the best returns compared to emerging market Asian bonds, but their risk remains high, giving investors pause. Therefore, transparency and governance issues, which are current market concerns, need to be addressed. In the stock market, Indonesian share valuations are very cheap, with high dividend offerings and a strong economy on paper, making them quite attractive, though the market is still overshadowed by a number of risks.