A stock trader monitors the Indonesia Stock Exchange (IDX) Composite index in South Tangerang, Banten, on April 8, 2025. (AFP/Bay Ismoyo)
Foreign demand for Indonesian sovereign bonds has improved thanks to recent interest rate hikes from Bank Indonesia (BI), while the stock market is still in the doldrums.BI Senior Deputy Governor Destry Damayanti revealed in a press conference on Monday that, as of Friday, government and BI bonds combined had seen a net inflow of US$9 billion year-to-date (ytd), reflecting “offshore confidence” in Indonesia.
Following the press conference, Destry told The Jakarta Post that government bonds alone had still recorded a “small” net outflow of $570 million ytd but noted there had been a net inflow of Rp 25 trillion ($1.4 billion) in the second quarter so far.
Destry spoke before reporters after attending a closed meeting with the government and House of Representatives leaders.
Deputy National Economic Council head Mari Elka Pangestu, who attended the same meeting and press conference, said it was agreed that “what’s important is maintaining short-term macroeconomic stability”.
