Foreign Outflows Challenge Indonesia’s Bond Market Standing

A foreign investor exodus from Indonesia’s bond market has driven holdings to the lowest in nearly two decades, underscoring shaken confidence in the once-coveted asset after months of political turbulence.

For the first time in three years, the nation’s debt market is at risk of recording outflows after overseas funds reversed purchases of $4.6 billion. They now hold just 13% of outstanding government bonds, the lowest level since January 2007, Ministry of Finance data shows.