Are foreigners losing appetite on Indonesia's financial assets ?

Fajar

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Hi All,

Two consecutive months of deflations did not help strengthening rupiah, which remained volatile on a weakening trend due to capital outflows. Bank Indonesia’s decision to hold the interest rate policy is an appropriate trade-off. Manufacturing entered early level of expansionary phase. It is a momentum to carefully recover the economy amid the underperformed state budget spending.

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IESP Cover-Web Sep 2020.jpg
BTW, as of 14.45 today, IHSG reached further low of 5,018. It peaked at 5,371 on 27 August.

Foreign investors' net sell of stocks continued, and so did foreign ownership on government bonds.

Are they losing appetite on Indonesia's financial assets?

Fajar
 

waarmstrong

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Depends on of which "Indonesian financial assets" you speak. There is a lot more out there beyond stocks and bonds.
 

Fajar

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I mean stocks and govt. bonds. Yes, there are corporate bonds and many other types of assets in the markets.
 

snpark

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Most people just want to stay liquid in these uncertain times. Especially foreigners who might be kicked out the country at any time or unable to access their assets and savings. For example.
 

Ruserious

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I always felt the Indo stock market was a rigged game for wealthy Indonesians. Maybe you could convince me otherwise. Also i have no faith in the rupiah seeing how much movement there has been this year.
 

Fajar

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Most people just want to stay liquid in these uncertain times. Especially foreigners who might be kicked out the country at any time or unable to access their assets and savings. For example.
Agree. That's an understandable rational choice. Any capital restrictions must not be imposed as it would worsening the situation.
 

Fajar

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I always felt the Indo stock market was a rigged game for wealthy Indonesians. Maybe you could convince me otherwise. Also i have no faith in the rupiah seeing how much movement there has been this year.
Recently, new investors in stock and govt bond markets are on an upward trend, largely are the millennials. See this link: https://market.bisnis.com/read/2020...h-pandemi-investor-milenial-serbu-pasar-modal
In Jan-Aug 2020 there were 3.1 million stock investors with 693,000 new SID, and 65.8% of them are under 30 years old. It also apply for mutual funds and bonds. Financial advisors/planners has been growing since 2010s and young middle class in big cities have more interests in higher returns financial instruments, instead of bank saving. Too bad, there is a case of Jouska abusing its role as financial planner.

It's difficult for rupiah to recover and back to 14,000 as long as the pandemic is still lingering and recession is coming.
 

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