The Indonesian government has high hopes that ongoing discussions on a comprehensive economic partnership agreement with South Korea will encourage investment through special arrangements, according to government officials.
Indonesia raised $350 million in funds from selling three-year, dollar-denominated bonds on the domestic market, the second such sale so far.
Indonesian retail sales made their swiftest jump in seven months in January, indicating that private spending remains robust in Southeast Asia’s largest economy.
The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates, according to the Bank for International Settlements.
Goldman Sachs is sticking with its recommendation to buy Chinese stocks, the biggest losers worldwide this year, after valuations fell to the lowest level in a decade versus global peers.
Indonesia’s foreign reserves rose 2 percent last month, bolstered by persistent inflow of offshore funds, which were attracted to an improving economy.
A stronger rupiah is expected to boost the performance of companies such as Mitra Adiperkasa and Ace Hardware this year, as they import most of their products.
Even with inflation slowing down, don’t expect interest rates in Indonesia to fall anytime soon under Bank Indonesia governor Agus Martowardojo.
The rupiah rose for a fifth week, the longest winning streak since April 2011, as Indonesia’s improving economy lured foreign funds to the nation’s assets.