Economist: Indonesia's Proactive Approach Drives Improvement in Market Perception
Jakarta (ANTARA) - Fakhrul Fulvian, Chief Economist at Trimegah Sekuritas Indonesia, views the proactive approach through direct engagement with global investors as a strategic step to improve market perceptions of Indonesia’s economy.
The meeting between Finance Minister Purbaya Yudhi Sadewa and Bank Indonesia Governor Perry Warjiyo with major institutions like BlackRock in New York, USA, is seen as increasingly relevant amid the complex and uncertain dynamics of the global market.
“Direct approaches like this are effective in addressing the narrative gap between domestic conditions and global investor perceptions. In markets heavily influenced by sentiment and stories, precise communication is crucial,” Fakhrul told ANTARA in Jakarta on Wednesday.
Nevertheless, he cautions that this step is not the sole determinant in shaping market perceptions.
“This is not a substitute for fundamentals. Market noise cannot be fully countered solely through communication; consistency in policy and on-the-ground execution are still needed,” he said.
Fakhrul views this issuer-investor engagement approach as reflecting a shift in policy communication strategy towards being more proactive and adaptive to global practices.
“We are beginning to see Indonesia moving from reactive communication patterns to a more forward-looking one. This approaches the practices of global institutions like Goldman Sachs, where managing market expectations becomes part of the policy itself,” he explained.
This is because, in the current context, policy is not just about substance, but also about how the policy is communicated and understood by the market.
During the meeting, the Finance Minister also conveyed a surge in offerings for Government Securities (SBN).
Regarding the SBN auction demand reaching Rp78.44 trillion, Fakhrul assesses that external factors still play a significant role in the short term.
According to him, the increase in SBN demand cannot be separated from the improving global sentiment that has become optimistic again.
Expectations of escalating geopolitical conflicts, particularly related to US-Iran dynamics, are beginning to subside with diplomatic efforts that reduce the global risk premium.
“This is driving capital flows back to emerging markets, including Indonesia,” he said.
Nevertheless, Fakhrul reminds of the importance of distinguishing between short-term sentiment improvements and structural confidence recovery.
“This is a window of opportunity. The challenge is how to convert this momentum into sticky capital through sustainable reforms and deepening of the domestic financial market,” Fakhrul stated.