Comparing Index Fund Products in Indonesia
A complete comparison of index funds and ETFs available in Indonesia: expense ratios, AUM, benchmark indices, and practical recommendations for passive investors.
Comparing Index Fund Products in Indonesia
After deciding to invest in index funds, the next question is: which product should you choose? This article compares the index funds (reksa dana indeks) and ETFs available in Indonesia. Also read about the difference between ETFs and mutual funds.
Equity Index Funds
Here are the equity index fund products available as of early 2026:
| Product Name | Benchmark Index | Fund Manager | Expense Ratio | AUM (estimate) |
|---|---|---|---|---|
| BNP Paribas SRI-KEHATI | SRI-KEHATI | BNP Paribas AM | ~1.0% | Rp 3+ trillion |
| Bahana IDX30 | IDX30 | Bahana TCW | ~0.7% | Rp 200-500 billion |
| Pinnacle IDX30 | IDX30 | Pinnacle IM | ~0.6% | Rp 50-100 billion |
| Simas IDX30 | IDX30 | Sinarmas AM | ~0.8% | Rp 100-300 billion |
| Principal Index IDX30 | IDX30 | Principal AM | ~0.8% | Rp 100-200 billion |
| Avrist IDX30 | IDX30 | Avrist AM | ~0.8% | Rp 50-100 billion |
| Manulife Indeks Saham Indonesia | LQ45 | Manulife AMII | ~0.9% | Rp 200-500 billion |
Important note: Expense ratios and AUM can change. Always check the latest fund fact sheet on the fund manager’s website or OJK (Indonesia’s Financial Services Authority) before buying.* The data in this table are estimates as of early 2026 and may change.
ETFs on the Indonesia Stock Exchange
| Ticker | Name | Benchmark Index | Manager | Expense Ratio |
|---|---|---|---|---|
| R-LQ45X | Premier ETF LQ45 | LQ45 | Indo Premier IM | ~0.5% |
| XIIT | Premier ETF IDX30 | IDX30 | Indo Premier IM | ~0.5% |
| XIHD | Premier ETF IDX High Dividend 20 | IDX High Div 20 | Indo Premier IM | ~0.5% |
| XISR | Premier ETF SRI-KEHATI | SRI-KEHATI | Indo Premier IM | ~0.5% |
| XIJI | Premier ETF Jakarta Islamic Index | JII | Indo Premier IM | ~0.5% |
| XKID | KISI IDX30 ETF | IDX30 | KISI AM | ~0.5% |
| XKVL | KISI IDX Value30 ETF | IDX Value30 | KISI AM | ~0.5% |
Reminder: ETFs in Indonesia have serious liquidity issues. Daily trading volumes are often very low, and spreads can be wide. For most investors, index mutual funds are more practical.
How to Compare Products
1. Expense Ratio (Management Fee)
This is the most important cost. The lower it is, the more returns you get to keep.
| Expense Ratio | Impact on Rp 100 million (20 years, 10% return)† |
|---|---|
| 0.5% | Final value: Rp 612 million |
| 0.7% | Final value: Rp 585 million |
| 1.0% | Final value: Rp 548 million |
| 2.0% | Final value: Rp 446 million |
A difference of just 0.5% in expense ratio can mean tens of millions of Rupiah over 20 years.
2. AUM (Assets Under Management)
AUM shows the total funds being managed. Here’s a guide:
| AUM | Assessment |
|---|---|
| > Rp 1 trillion | Very large, very stable |
| Rp 100 billion - 1 trillion | Good, reasonably stable |
| Rp 10 - 100 billion | Be cautious — risk of liquidation if AUM keeps declining |
| < Rp 10 billion | Avoid — high liquidation risk |
If a fund’s AUM is too small, the fund manager may decide to liquidate (dissolve) the fund. You won’t lose your money, but you’ll need to find a replacement product.
3. Tracking Error
Tracking error measures how accurately the fund follows its benchmark index. Lower tracking error = better management.
Unfortunately, tracking error data isn’t always easy to find for Indonesian products. A rough way to check:
- Compare the fund’s return with its benchmark index’s return in the fund fact sheet
- A consistently small difference (< 1%) indicates good tracking
4. Fund Manager
| Fund Manager | Reputation | Notes |
|---|---|---|
| BNP Paribas AM | Excellent | Part of global BNP Paribas group |
| Bahana TCW | Good | Joint venture with TCW (US) |
| Manulife AMII | Good | Part of global Manulife group |
| Indo Premier IM | Good | Largest ETF manager in Indonesia |
| Principal AM | Good | Part of global Principal group |
| Sinarmas AM | Quite good | Part of Sinarmas group |
| Pinnacle IM | Quite good | Independent local fund manager |
All the fund managers above are registered with and supervised by OJK. The risk of a manager “running away with your money” is very low because mutual fund assets are held at a custodian bank separate from the fund manager.
Comparison by Benchmark Index
IDX30 vs LQ45 vs SRI-KEHATI
| Aspect | IDX30 | LQ45 | SRI-KEHATI |
|---|---|---|---|
| Number of stocks | 30 | 45 | 25 |
| Criteria | Highest liquidity | High liquidity | Sustainability (ESG) |
| Concentration | High (dominated by banks) | Medium | Medium |
| Historical returns | Similar to LQ45 | Similar to IDX30 | Often slightly better |
| Products available | Many choices | Several | BNP Paribas (largest AUM) |
These three indices have significant overlap — many of the same stocks are in all three. Long-term return differences are usually not significant.
Practical Recommendations
For Beginner Investors (< Rp 50 million)
Choose one index fund. Don’t get confused by too many options.
| Choice | Reason |
|---|---|
| Bahana IDX30 | Low expense ratio, popular index |
| BNP Paribas SRI-KEHATI | Largest AUM, long track record |
For Intermediate Investors (Rp 50-500 million)
You can start diversifying:
- IDX30 index fund (main portion)
- SBN ritel (retail government bonds) for your bond component
- Optional: SRI-KEHATI index fund for diversification
For Large Investors (> Rp 500 million)
You might consider:
- ETFs via IPOT (for cost efficiency if your volume is sufficient)
- Diversification into global stocks (via international platforms)
- Various series of SBN ritel (laddering strategy)
Portfolio Construction Examples by Life Stage
Choosing the right index fund depends on your life stage and risk tolerance:
Early Career (20s-30s, 10+ years horizon)
Strategy: Maximum growth, minimal bonds
| Asset | Allocation | Specific Products |
|---|---|---|
| Indonesian stocks | 90% | Bahana IDX30 (70%) + BNP Paribas SRI-KEHATI (20%) |
| Indonesian bonds | 10% | SBN Ritel (ORI/SR series) |
Rationale: Long time horizon means you can tolerate volatility. Stock-heavy portfolio maximizes compounding potential.
Mid-Career (40s-50s, 5-10 years horizon)
Strategy: Balanced growth and stability
| Asset | Allocation | Specific Products |
|---|---|---|
| Indonesian stocks | 60-70% | Bahana IDX30 or BNP Paribas SRI-KEHATI |
| Indonesian bonds | 30-40% | SBN Ritel ladder (multiple series) |
Rationale: Approaching major goals (retirement, children’s education). Need more stability but still require growth.
Pre-Retirement (60+, <5 years horizon)
Strategy: Capital preservation with modest growth
| Asset | Allocation | Specific Products |
|---|---|---|
| Indonesian stocks | 30-40% | BNP Paribas SRI-KEHATI (largest AUM, less liquidation risk) |
| Indonesian bonds | 60-70% | SBN Ritel (short-term series, 2-3 year maturity) |
Rationale: Cannot afford major drawdowns. Prioritize stability and income over growth.
When Multiple Index Funds Make Sense
Despite our advice to keep it simple, there ARE scenarios where holding multiple products is justified:
Geographic Diversification
- One Indonesian index fund (IDX30 or SRI-KEHATI)
- One global index fund (if/when available domestically)
- Purpose: reduce country-specific risk
Factor Diversification
- IDX30 (market-cap weighted, growth-tilted)
- IDX Value30 (value-tilted)
- Purpose: capture different return sources
Manager Redundancy (for large portfolios)
- Bahana IDX30 (primary)
- Pinnacle IDX30 (backup)
- Purpose: mitigate single-manager operational risk (rare but possible)
Key principle: Each additional fund must serve a distinct purpose. Holding Bahana IDX30 + Simas IDX30 + Principal IDX30 is redundant — they’re all tracking the same index.
The Liquidity Question: Index Funds vs ETFs
Many investors wonder why Indonesian ETFs remain illiquid despite being “more efficient” on paper:
Why Indonesian ETFs struggle:
| Factor | Impact on Liquidity |
|---|---|
| Retail-dominated market | Most Indonesians buy mutual funds through bank apps, not stock exchanges |
| Lack of market makers | No institutional support for continuous two-way quotes |
| Minimum lot size | 100 shares (~Rp 10 million minimum) discourages small investors |
| Investment app integration | Most digital platforms (Bibit, Bareksa, Ajaib) emphasize mutual funds |
Real liquidity comparison (February 2026 snapshot):
| Product Type | Daily Volume (estimate) | Ease of Exit |
|---|---|---|
| Bahana IDX30 mutual fund | Rp 500 million - 2 billion | Always liquid at NAV |
| XIIT ETF (IDX30) | Rp 5-50 million | Depends on market hours, spread risk |
For retail investors dealing with amounts under Rp 100 million, index mutual funds remain significantly more practical than ETFs in the Indonesian market.
Tax Optimization: Why Index Funds Win
One often-overlooked advantage of index mutual funds over direct stock picking:
Tax efficiency comparison:
| Investment Type | Tax on Gains | Tax on Income | Reporting Complexity |
|---|---|---|---|
| Index mutual fund | 0% | 0% | Low (just report final balance) |
| Individual stocks | 0.1% per sale | 10% on dividends* | Medium (track each transaction) |
| ETF | 0.1% per sale | 10% on dividends* | Medium (track each transaction) |
* Can be reduced to 0% if dividends are reinvested within regulatory timeframe
Long-term tax impact example:
Assume Rp 100 million growing to Rp 500 million over 15 years with annual rebalancing:
- Index mutual fund: Tax paid = Rp 0
- ETF/stocks with annual rebalancing: Tax paid ≈ Rp 750,000 (0.1% × Rp 500 million + dividend taxes)
Over decades, this tax advantage compounds significantly.
How to Evaluate New Index Fund Launches
The Indonesian mutual fund market occasionally sees new index fund launches. Here’s how to evaluate them:
Must-have criteria:
- Expense ratio ≤ 1.0% (preferably < 0.7%)
- Benchmark index is recognized (IDX family, JII, SRI-KEHATI)
- Fund manager is OJK-registered and reputable
- Initial AUM target > Rp 50 billion
Warning signs:
- Expense ratio > 1.5%
- Custom or obscure benchmark index
- Very small initial AUM (< Rp 10 billion)
- Lack of clear fund fact sheet or disclosure
Historical perspective: Several index funds launched between 2015-2020 have been liquidated due to low AUM. Products that survived typically had either:
- Strong distribution network (bank channels)
- Institutional backing
- Compelling value proposition (lowest cost, ESG angle)
Switching Products: When Is It Worth It?
Changing from one index fund to another has costs (time, cognitive overhead, potential tax implications for non-mutual fund products). Here’s when switching makes sense:
Worth switching:
- Current fund’s expense ratio increases significantly (>0.5% more than alternatives)
- Current fund’s AUM drops below Rp 50 billion and keeps declining
- New product offers materially better terms (e.g., 0.3% vs 1.0% expense ratio)
NOT worth switching:
- Marginal cost difference (e.g., 0.65% vs 0.70%)
- Current fund underperformed by 0.5% last year (tracking error, not structural problem)
- “Grass is greener” thinking without concrete advantage
Switching cost framework:
If potential annual savings < Rp 500,000, probably not worth the hassle for most retail investors. If savings > Rp 2 million/year, switching becomes compelling.
What You DON’T Need to Do
-
Buy every product — One index fund is enough. Buying Bahana IDX30 AND Simas IDX30 AND Principal IDX30 is a waste of time — they all hold the same thing.
-
Keep switching products — Don’t sell fund A to buy fund B just because of a 0.1% expense ratio difference. The switching costs (time, effort) aren’t worth it.
-
Chase “this year’s best fund” — Past returns don’t predict future returns. Choose based on costs and consistency, not annual rankings.
-
Wait for the “perfect” product — There’s no perfect index fund. What’s available is already good enough. Starting now is better than waiting.
Conclusion
- Expense ratio is the most important factor when choosing an index fund
- BNP Paribas SRI-KEHATI (largest AUM) and Bahana IDX30 (low cost) are solid choices
- ETFs in Indonesia aren’t practical yet for most retail investors
- One index fund is enough — don’t over-diversify with similar products
- Pick one, buy regularly, and focus on other things in life
Sources & References:
* Product data for mutual funds and ETFs can be verified through the OJK website, individual fund managers’ fund fact sheets, and IDX — ETF for ETF products.
† The expense ratio impact calculation uses the compound interest formula: FV = PV × (1 + r)^n, where r = net return after fees.
Disclaimer: This article is for educational purposes only, not investment advice. Expense ratio and AUM data are estimates as of early 2026 and may change. Always verify with the latest fund fact sheet before investing.