Capital Flight Exposes Cracks in Indonesia’s Fiscal Credibility
Monday, October 13, 2025
Capital flight shows no sign of easing. Foreign investors dump Indonesia’s bonds and the rupiah weakens.
arsip tempo : 176579831675.
INDONESIA’s financial markets have begun to look like a leaking dam. Investor capital continues to seep out, seeking safer ground abroad. The outflow reached a new peak at the end of August, following the mass protests and subsequent looting of Finance Minister Sri Mulyani Indrawati’s residence.
The heaviest drainage has been through the government bond market. In September 2025 alone, foreign investors pulled out Rp44.76 trilli
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