Global Money Piles Into Indonesia as Fed Easing Cycle Approaches
- Foreigners pour billions of dollars into its assets in August
- Indonesia offers fiscal discipline, valuations with rate cuts
An employee directs a shipping container while its loaded onto a truck at the IPC Container Terminal at Tanjung Priok Port in Jakarta
Photographer: Dimas Ardian/BloombergGlobal money has flooded into Indonesia’s financial markets this month, signaling the country’s assets have quickly become a preferred investment destination as the US Federal Reserve’s easing cycle nears.
Overseas investors have bought $933.8 million of the nation’s stocks in August, on course for the biggest monthly purchases since April 2022, while net inflows of $2.5 billion into bonds is the most in more than a year, according to data compiled by Bloomberg. The influx of money saw the rupiah briefly erase this year’s losses against the dollar, with a gain this month surpassed in Asia only by Malaysia’s ringgit.