Impact of Bank Indonesia Rate Hike to 6%
📌 Bank Indonesia (BI) unexpectedly raised the benchmark interest rate to 6%, moving away from previous expectations of a rate cut.
⚔️ This hike was largely driven by external factors, specifically the Israel-Hamas war, which caused global oil prices to rise by 15% due to fear of broader supply disruptions in the Middle East.
📉 The thin margin between the US rate (5.5%) and the Indonesian rate (6%) incentivized foreign investors to prefer the safer, stronger US dollar, leading to the Rupiah weakening toward IDR 16,000 before the rate adjustment.
🔮 The expert predicts that interest rates will likely remain "higher for longer," though they will eventually decrease.

Shifts in Investment Allocation (High Risk to Low Risk)
💰 Money is shifting from high-risk assets (like stocks and crypto) toward low-risk assets due to higher guaranteed returns from safe instruments.
📉 This shift has burdened the IHSG, causing blue-chip and banking stocks to drop, despite underlying company fundamentals remaining strong.
📈 Investors with a long-term horizon are advised to use the current downturn as an opportunity to accumulate (DCA) assets at lower prices.

Attractive Low-Risk Assets in High-Rate Environment
🏦 Bank Deposits (especially BPRs): As BI raises the rate, standard bank deposit rates will increase, but investors must be wary of individual bank risk.
🛡️ The LPS guarantee limit is expected to rise to 4.5% for commercial banks and 7.0% for BPRs, making BPR time deposits attractive for beginners seeking fixed, guaranteed returns (up to 7% annually).
🧰 Retail Government Bonds (SBN Retail): These offer fixed returns that are increasing; the latest offering (ST011) yielded nearly 6.5% annually, making them a strong low-risk option.
🥇 Gold: Its price rises due to two factors: increased global uncertainty (acting as a safe haven) and the weakening of the Rupiah against the USD.

Impact on Borrowing Costs and Debt
💸 Higher BI rates translate to increased borrowing costs across the board, including business loans, consumer credit, vehicle loans, and mortgages (KPR).
📉 Homeowners with floating-rate KPRs are seeing painful increases, with some reporting rates between 13% and 15% per year.
🔄 For those locked into high floating rates, KPR takeover or refinancing to a new fixed-rate mortgage should be considered, even if it involves penalty fees, as it may be cheaper than sustained high floating payments.

Key Points & Insights
➡️ The primary investment strategy in this environment involves rotating capital from high-risk assets to low-risk assets like guaranteed deposits and government bonds.
➡️ For beginners or those seeking certainty, BPR time deposits offer appealing, LPS-guaranteed returns up to 7.0% (for BPRs) without complex market analysis.
➡️ Existing homeowners with floating-rate KPRs should actively calculate the cost-benefit of refinancing to a fixed-rate loan to avoid potentially crippling interest payments above 10%.

📸 Video summarized with SummaryTube.com on Nov 02, 2025, 12:53 UTC