Indonesian Bonds Hit by Foreign Fund Outflows on Policy Woes

Foreign investors sold Indonesian government bonds again last month, underscoring concerns over the government’s plans to increase spending and raise the deficit limit.

Overseas funds sold a net $1.8 billion of Indonesian bonds in October, bringing outflows in the past two months to more than $4 billion, on concerns over the central bank’s autonomy, as well as fiscal discipline following the change in finance minister. That shaves this year’s overall inflows to $305 million.