Indonesia is expected to see more capital inflows in the bond market until the end of this year as yield-seeking investors are turning to the country during times of economic slowdown and low interest rates around the world, analysts say.
As of Monday, foreign investors had bought a total of Rp 118.9 trillion (US$8.48 billion) of government bonds since the beginning of the year. The number was equal to about 46 percent of all government bond sales during the period.
Mandiri Sekuritas fixed-income analyst Handy Yunianto said on Monday that the foreign investors’ rising appetite in the Indonesian bond market was not necessarily caused by tightening liquidity, but rather by slowing global growth.
Starting from IDR 55,000/month
Or let Google manage your subscription