Video: Facing the Effects of War, Is the "Cash is King" Strategy the Choice?

Escalating geopolitical tensions in the Middle East continue to intensify, propelling a surge in global oil prices and posing risks of heightened inflation worldwide, which in turn constrains the potential for central banks to further reduce benchmark interest rates. This situation, as noted by Camar Remoa, Director of PT Insight Investments Management, is diminishing the probability of interest rate cuts by institutions ranging from the US Federal Reserve to Bank Indonesia. Forecasts suggest the Federal Reserve has only a single opportunity to lower rates, whereas Bank Indonesia could still trim the BI Rate twice. In response to these conditions, market participants, including investment managers, are taking anticipatory measures by increasing the cash allocation in their portfolios. The aim is to bolster liquidity while creating opportunities to re-accumulate assets should the market experience ongoing corrections. For a detailed look at the investment strategies employed by investment managers to navigate the current market volatility, see the dialogue between Andi Shalini and Camar Remoa, Director of PT Insight Investments Management, in Power Lunch on CNBC Indonesia (Tuesday, 10/03/2026).