(Feb 4): Demand for Indonesian government bonds fell to the lowest in more than a year after an equity meltdown spurred by index provider MSCI Inc’s concerns about the country’s investability. MSCI’s warning about transparency in equity holdings last week caused stocks to suffer their steepest drop since the Asian Financial Crisis. Foreign investors sold a net US$202 million (RM794.36 million) of Indonesian bonds on Wednesday and Thursday, before officials rushed to announce market-reform plans, helping to calm the market and bring back bond inflows. Indonesian bonds had already been suffering from rising concerns about domestic fiscal discipline, a weakening rupiah and the central bank’s independence after the appointment of Indonesian President Prabowo Subianto’s nephew as a deputy governor. Yields on 10-year debt have risen around 25 basis points so far this year, to about 6.31%.

Source: The Edge Markets February 04, 2026 03:21 UTC