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Indonesia Resurgence Gathers Pace as Global Investors Pile In

  • Rupiah, local bonds among Asia’s best performing this year
  • Central bank meets Jan. 17 after hiking rates 6 times in 2018
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Photographer: Dimas Ardian/Bloomberg

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The return of yield-hungry investors is signaling the worst may be over for Indonesia.

Global funds are piling back into Asia’s bellwether for emerging markets, buying $795 million of debt so far this year and sending yields down about 90 basis points from their October peak as the Federal Reserve looks to take a more cautious approach to policy tightening. That’s spelling relief for the rupiah and Bank Indonesia, which spent most of 2018 seeking to stem an exodus of foreign capital amid a rout in developing-nation assets.