Purbaya Assures Global Investors of Indonesia's Fiscal Resilience - BCA Sekuritas

Finance Minister Purbaya Yudhi Sadewa reassured global investors about Indonesia’s macroeconomic fundamental resilience and fiscal strategies during meetings in New York and Washington DC, United States. “Essentially, we explained our economic conditions and future fiscal strategies, so they are convinced that our fiscal movements or policies are heading in the right direction,” Purbaya stated in a written release in Jakarta on Tuesday. Among the attending investors were HSBC Global Asset Management, Lazard AM, BlackRock, Lord Abbett, and TD Asset Management. The Finance Minister noted that these global investors are interested in placing capital in Indonesia but sought confirmation on the current investment comfort level. Therefore, Purbaya outlined Indonesia’s fundamental policies to assure investors that the country offers a promising economic landscape for investment. “So they (the investors) are not in doubt; they just heard noise that our fiscal situation is problematic, and they wanted to confirm that it is not true,” he said. Purbaya also received positive input suggesting that the Indonesian government improve communication with US investors, given that Indonesia’s macroeconomic foundations are considered very solid. The state treasurer also conveyed that the investors have confidence in the direction of Indonesia’s fiscal policies moving correctly. According to him, the investors believe that assessments by international rating agencies are premature.