But the influx of funds came just before Moody’s Ratings cut Indonesia’s rating outlook to negative on concerns of policy uncertainty and weakening governance under Indonesian President Prabowo Subianto’s administration. It added to market jitters after MSCI Inc warned it might downgrade the nation’s stocks to Frontier status due to a lack of transparency and market liquidity.
(Feb 9): Global investors swarmed into Indonesian debt just before the market turned against them.
Foreign funds snapped up a net US$304 million of Indonesian government bonds on Thursday, the most since August, according to government data released over the weekend.
