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Indonesia Enjoys Investment Inflows Amidst the Growing Risk of an Economic Slowdown

Monday, December 11, 2023

The capital flight takes a U-turn, as portfolio investment funds return to the Indonesian financial market. There is a growing risk of economic slowdown, though.

arsip tempo : 171430161042.

Ilustration TEMPO/Imam Yunianto. tempo : 171430161042.

FINALLY, the ‘bleeding’ has stopped. After months of witnessing capital outflows, Indonesia saw a reversal of foreign portfolio investment flows into the domestic financial market in November. Indonesia’s foreign exchange reserves increased by US$5 billion in just one month, reaching US$138.1 billion by the end of November.

The shift in investment flows and positive market sentiment is undoubtedly tied to predictions about

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