Capital Outflow Reaches USD 14 Billion, Paramadina Discussion Reveals Government's Strategy to Restore Investor Confidence

A discussion at Paramadina delved into the implications of the USD 14 billion capital outflow, examining the roles of MSCI and Moody’s ratings in exacerbating the situation. Participants highlighted how these downgrades have eroded investor confidence in Indonesia’s markets. The forum revealed the government’s comprehensive strategies to restore trust, focusing on capital market reforms such as improving governance, enhancing regulatory frameworks, and promoting transparency to attract foreign investment back. Key speakers emphasised the need for swift implementation of these measures to stabilise the economy and prevent further outflows. The discussion also touched on broader economic policies aimed at supporting market recovery and sustainable growth.