Investors look inward amid global stress


Global trends: A teller counts rupiah banknotes in Jakarta. A recent global sell-off in long-term government bonds was attributed to domestic politics and fiscal trends in different countries. — Reuters

JAKARTA: Growing concern about debt levels in developed economies could see some bond investors look to emerging market issuances as an alternative, but in Indonesia, they will want answers about the new finance minister and the burden-sharing scheme with Bank Indonesia (BI).

Permata Bank chief economist Josua Pardede told The Jakarta Post that, “all in all”, investors view Indonesia’s bonds to be competitive with those of India, its traditional rival in the region, given the declining yield trend and attractive real yield.

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