Korea Investment Management's KIM Fixed Income Fund Plus and KIM Fixed Income Sharia Fund have extended redemption cycles as liquidity dries up in Indonesia's bond market. Investors may now wait up to 7 trading days, double the usual three‑day settlement. The move aims to give the local subsidiary time to sell bonds amid a sharp sell‑off in Indonesian assets, protecting investor interests and maintaining fund stability.

The slowdown follows weeks of pressure as foreign money fled stocks and bonds, fearing the central bank must keep raising rates to steady the rupiah. Bank Indonesia shocked markets with an off‑cycle hike—the first in eight years—while scaling back government‑bond purchases, letting yields climb to lure foreign buyers.

The liquidity squeeze has already dented fund performance. The 5.7 trillion rupiah KIM Fixed Income Fund Plus slipped 1.5% this week, while the 691.4 billion‑rupiah Sharia variant fell 0.7%, marking each fund's first weekly decline on record. Investors now face delayed cash returns and heightened exposure to volatile Indonesian rates. The delay underscores broader credit stress and could pressure other regional fund managers to reassess liquidity buffers.