Government of Indonesia Eyes $657 Million in Tuesday’s Bond Auction


In recent months Indonesia’s debt markets have been hit by some outflows as foreign investors have been selling high-yielding (yet risky) assets in emerging markets - including Indonesia - due to the appreciating US dollar amid tightening monetary policy of the US Federal Reserve. Moreover, recent political developments in Indonesia have been undermining foreign investors’ trust in Indonesia’s economic potential. President-elect Joko Widodo, who will be inaugurated on 20 October 2014, faces a hostile Merah-Putih coalition in parliament. This coalition, consisting of six political parties, is led by defeated and vindictive presidential candidate Prabowo Subianto.

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