Indonesia Plans Looser Rules for Some Mutual Funds

Indonesian regulators are planning looser overseas investment limits for some new mutual funds, potentially allowing some funds to allocate more than half of their cash to overseas markets.

The Financial Services Authority has approved a proposal filed by a local industry group and its next step will be drawing up new regulations for the sector, Aliyahdin Saugi, president director of PT Allianz Global Investors Asset Management Indonesia, said in a Bloomberg forum in Jakarta on Tuesday evening. That may happen next year, he said.