Funds Sell Indonesian Bonds on Fiscal Fears, Free Lunch Pledge
- Since election, net foreign bond outflows stand at $1 billion
- EM hedge funds expressed concerns over fiscal outlook: Goldman
International investors have become skittish over Indonesian bonds as election pledges have spurred burgeoning budgetary fears and a possible spending spree.
Global funds have withdrawn $1.1 billion from Indonesian bonds since balloting closed on Feb. 14, with net foreign bond outflows in 16 out of the 20 days since. Regional peers South Korea and India have seen offshore inflows while Thailand observed an outflow of only $502 million over the same period.