Indonesia’s Market Comeback Draws Cautious Foreign Buyers

‼️ 🇮🇩 Foreign funds have bought Indonesian bonds for a fourth straight month, the rupiah has rebounded more than 3.5% from June’s record low, and equities are on track for their first quarterly inflow of 2026 as managers including Invesco and PPM America trim underweights. Confidence has been bolstered by President Prabowo Subianto’s pledge to rein in the budget deficit, regulatory steps to address MSCI’s transparency concerns, and newly appointed Bank Indonesia Governor Destry Damayanti’s commitment to policy continuity. Even so, deeper doubts over policy execution—and unease about Prabowo’s interventionist agenda—mean most investors remain cautious rather than rushing back in.

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