Jakarta (ANTARA) - Fakhrul Fulvian, Chief Economist at Trimegah\nSekuritas Indonesia, views the proactive approach through direct\nengagement with global investors as a strategic step to improve market\nperceptions of Indonesia\u2019s economy.<\/p>\n
The meeting between Finance Minister Purbaya Yudhi Sadewa and Bank\nIndonesia Governor Perry Warjiyo with major institutions like BlackRock\nin New York, USA, is seen as increasingly relevant amid the complex and\nuncertain dynamics of the global market.<\/p>\n
\u201cDirect approaches like this are effective in addressing the\nnarrative gap between domestic conditions and global investor\nperceptions. In markets heavily influenced by sentiment and stories,\nprecise communication is crucial,\u201d Fakhrul told ANTARA in Jakarta on\nWednesday.<\/p>\n
Nevertheless, he cautions that this step is not the sole determinant\nin shaping market perceptions.<\/p>\n
\u201cThis is not a substitute for fundamentals. Market noise cannot be\nfully countered solely through communication; consistency in policy and\non-the-ground execution are still needed,\u201d he said.<\/p>\n
Fakhrul views this issuer-investor engagement approach as reflecting\na shift in policy communication strategy towards being more proactive\nand adaptive to global practices.<\/p>\n
\u201cWe are beginning to see Indonesia moving from reactive communication\npatterns to a more forward-looking one. This approaches the practices of\nglobal institutions like Goldman Sachs, where managing market\nexpectations becomes part of the policy itself,\u201d he explained.<\/p>\n
This is because, in the current context, policy is not just about\nsubstance, but also about how the policy is communicated and understood\nby the market.<\/p>\n
During the meeting, the Finance Minister also conveyed a surge in\nofferings for Government Securities (SBN).<\/p>\n
Regarding the SBN auction demand reaching Rp78.44 trillion, Fakhrul\nassesses that external factors still play a significant role in the\nshort term.<\/p>\n
According to him, the increase in SBN demand cannot be separated from\nthe improving global sentiment that has become optimistic again.<\/p>\n
Expectations of escalating geopolitical conflicts, particularly\nrelated to US-Iran dynamics, are beginning to subside with diplomatic\nefforts that reduce the global risk premium.<\/p>\n
\u201cThis is driving capital flows back to emerging markets, including\nIndonesia,\u201d he said.<\/p>\n
Nevertheless, Fakhrul reminds of the importance of distinguishing\nbetween short-term sentiment improvements and structural confidence\nrecovery.<\/p>\n
\u201cThis is a window of opportunity. The challenge is how to convert\nthis momentum into sticky capital through sustainable reforms and\ndeepening of the domestic financial market,\u201d Fakhrul stated.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/economist-indonesias-proactive-approach-drives-improvement-in-market-perception-1776261049", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }