Foreign investors are showing increasing interest in Indonesian sovereign bonds, with their buying streak now extending into a sixth consecutive month. This rise in demand can be attributed to the new president's commitment to fiscal discipline and the attractiveness of emerging market alternatives amidst the volatility surrounding the US elections.
Furthermore, investor confidence has been boosted by Indonesia's manageable inflation rates and the unexpected rate cut by the central bank in September, which was aimed at stimulating economic growth.
Offshore funds have actively purchased rupiah bonds, achieving the longest buying spree since 2017, according to Bloomberg data.