{
    "success": true,
    "data": {
        "id": 1682893,
        "msgid": "purbaya-visits-major-us-investors-will-it-successfully-bring-them-to-indonesia-soon-1776394250",
        "date": "2026-04-17 09:25:31",
        "title": "Purbaya Visits Major US Investors: Will It Successfully Bring Them to Indonesia Soon?",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Finance Minister Purbaya Yudhi Sadewa expressed optimism about major foreign investments flowing into Indonesia following his meetings with US investors during the IMF Spring Meetings in Washington DC. However, economists from CSIS and INDEF caution that while perceptions of Indonesia remain positive, investors are adopting a wait-and-see approach due to concerns over policy credibility, fiscal challenges, and global uncertainties, as evidenced by recent net outflows in the stock market and rising credit default swap premiums. This highlights the need for consistent fiscal discipline and regulatory certainty to convert positive sentiment into substantial capital inflows.",
        "content": "<p>The government claims that foreign investors will soon inject\nsignificant capital into the country. This optimism was previously\nexpressed by Finance Minister Purbaya Yudhi Sadewa following his\nmeetings with major US investors during the International Monetary Fund\n(IMF) Spring Meetings in Washington DC, United States, this week.\nHowever, is it true that foreign investors are ready to invest large\namounts of capital in Indonesia? Several economists assess that the\nreality on the ground does not yet fully align with the government\u2019s\noptimism. Foreign investors still view Indonesia as an attractive\nmarket, but they are not fully confident to enter aggressively. Senior\nresearcher at the Department of Economics, Center for Strategic and\nInternational Studies (CSIS), Deni Friawan, explained that foreign\ninvestors\u2019 perception of Indonesia is still positive. However, this\npositive sentiment has not automatically translated into large capital\nflows. \u201cSo if it\u2019s said to still be positive, still interested in\nIndonesia as stated by the Minister, yes. But what it means by still\npositive is that currently, it doesn\u2019t mean there is a large influx of\nforeign funds into Indonesia yet, not like that,\u201d Deni told CNBC\nIndonesia, quoted on Friday (17\/4\/2026). He explained that foreign\ninvestors are currently tending towards a wait-and-see position. They\nare still assessing how strong and credible the Indonesian government\u2019s\npolicies are, especially in facing fiscal challenges and global\nvolatility. According to Deni, Indonesia remains considered attractive\ndue to its promising growth potential. However, investor confidence has\nnot fully recovered. Investor confidence can be seen from several market\nindicators, such as capital inflows, yields on Government Securities\n(SBN), credit default swaps (CDS), and foreign direct investment (FDI).\nDeni exemplified that foreign capital flows in the stock market were\nhigh in January, but after that, there was a significant outflow.\nMeanwhile, the returning funds have not entered as much as in previous\nperiods. For information, Bank Indonesia (BI) recorded that during the\ntrading period of 12-14 January 2025, foreign investors recorded a net\nselling action (net outflow) of Rp7.71 trillion. In line with this\ndynamic, Indonesia\u2019s risk indicators also rose. Indonesia\u2019s 5-year\nCredit Default Swap (CDS) premium as of 14 January 2026 was recorded at\n71.43 basis points (bps), up from 69.31 bps on 9 January 2026. This\nincrease indicates that global investors are becoming more cautious at\nthe start of the year, although Indonesia\u2019s CDS level remains relatively\nstable. \u201cThe CDS also rose from the previous up to 75 basis points.\nAgain, this shows increasing risk. But it doesn\u2019t mean foreign investors\nare really exiting. They are waiting for inflows, but most are still\nwaiting to see how Indonesia\u2019s policies continue. FDI is also not\nbooming yet. There are inflows, but not as booming as in previous\nyears,\u201d he said. On the other hand, Head of Center for Macroeconomics\nand Finance at INDEF, M. Rizal Taufikurahman, assessed that foreign\ninvestors\u2019 perception of Indonesia currently is not entirely or as\npositive as the government\u2019s narrative. Fundamentals are still\nmaintained with growth around 5% and a relatively safe debt ratio, but\nmarket indicators show increasing caution. The decline in foreign\nownership of SBN to around 12% and pressure on the rupiah reflect that\ninvestors are still entering, but with a higher risk premium. \u201cSo,\nIndonesia\u2019s position now is not \u2018highly trusted\u2019, but still attractive,\nyet no longer unconditional,\u201d Rizal told CNBC Indonesia, quoted on\nFriday (17\/4\/2026). Rizal assessed that the main factor determining\ninvestor interest is no longer economic growth, but policy credibility\nand regulatory certainty. 5% growth is already considered a baseline.\nWhat investors are concerned about is the fiscal direction, policy\nconsistency, and exchange rate stability. \u201cWhen there is a perception\nthat policies could change or fiscal becomes looser without clear\nfinancing, investors immediately raise the risk premium,\u201d he said.\nGlobal volatility also has great potential to accelerate changes in\ninvestor perceptions. According to him, with high global interest rates,\na strong dollar, and geopolitical tensions, emerging markets like\nIndonesia are very vulnerable to capital flow reversals. \u201cEspecially if\ndomestic factors are not fully solid, then external shocks can quickly\nchange sentiment from wait-and-see to risk-off,\u201d he said. \u201cWhat the\ngovernment needs to fix is not just communication, but the credibility\nof the policies themselves. Fiscal discipline must be maintained\nconsistently, policy direction must be clear and not changeable, and\nlegal certainty needs to be strengthened,\u201d Rizal emphasised.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/purbaya-visits-major-us-investors-will-it-successfully-bring-them-to-indonesia-soon-1776394250",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}