Funds sell Indonesian bonds on fiscal fears

Incoming President Prabowo Subianto’s election promises have spooked investors, even as he has vowed to maintain fiscal discipline. — AFP

JAKARTA: International investors have become skittish over Indonesian bonds as election pledges have spurred burgeoning budgetary fears and a possible spending spree.

Global funds have withdrawn US$1.1bil from Indonesian bonds since balloting closed on Feb 14, with net foreign bond outflows in 16 out of the 20 days since.