The continued depreciation of the rupiah has prompted investment managers to become increasingly cautious and selective in allocating funds within financial markets. According to TradingView data as of Monday (June 1, 2026), the rupiah was trading at Rp17,878 per US dollar. In response to these conditions, Simpan Asset Management has begun shifting its investment focus toward stocks with high dividend yields, which are considered more attractive following recent market corrections. Genandy Amiharja, Senior Equity Research at Simpan Asset Management, stated that the weakening rupiah has become a significant concern for the company.

He noted that Bank Indonesia’s decision to raise interest rates beyond market expectations indicates that exchange rate stabilization has become the central bank’s primary objective. To anticipate changes in macroeconomic conditions since the first quarter of this year, Simpan Asset Management has gradually adjusted its portfolio allocation.

In the equity market, the company has adopted a more defensive strategy. It has increased its cash position since foreign capital outflows intensified following the MSCI index rebalancing, which Genandy identified as one of the main drivers of heightened volatility in the domestic market.

He believes that risks in the stock market currently stem not only from the weakening rupiah and elevated interest rates but also from uncertainty surrounding foreign fund flows. Under such circumstances, Simpan Asset Management has become more selective in choosing stocks for its portfolio. One of the key indicators guiding its investment decisions is dividend yield.

“The dividend yields of several listed companies have now reached historically attractive levels due to recent market corrections, making them one of our primary selection criteria at the moment,” he told Bisnis on Monday (June 1, 2026).

In the fixed-income segment, the company has increased its exposure to short-term bonds because yields on shorter maturities have risen faster than benchmark interest rates. This strategy is intended to reduce the risk of bond price declines, which tend to be more pronounced for long-term securities when interest rates increase.

“We are taking this step proactively rather than reactively, with the objective of protecting the portfolio from mark-to-market pressures that are typically more significant in long-duration bonds,” he explained.

Going forward, Simpan Asset Management plans to continue adjusting its portfolio in line with evolving macroeconomic conditions. The company also intends to maintain adequate liquidity levels to capitalize on investment opportunities when market valuations become more attractive and signs of trend reversals begin to emerge in both the equity and bond markets.

“We are maintaining liquidity so that we can take advantage of opportunities when valuations become more appealing and when reversals begin to appear in stock indices or bond yields,” he said.