Indonesia Wants Foreigners to Own Less of Its Bonds in Long Run (Bloomberg)
Bloomberg Aug 23, 2018
Indonesia, rattled by a global emerging market selloff, wants to halve the foreign ownership of its sovereign bonds in five years as the government seeks to shield its assets from external shocks.
The Finance Ministry is seeking to bring down the amount of government bonds owned by offshore funds to 20 percent from almost 38 percent, Scenaider Siahaan, director of debt portfolio and strategy at the ministry, said by phone on Tuesday. With foreign investors still jittery about putting their money into emerging markets, the government considers it as an ideal time to widen domestic ownership, he said.
Indonesia has been one of the hardest-hit Asian emerging markets because of its reliance on foreign inflows to finance its current-account and budget deficits. Offshore ownership of its bonds peaked at just under 42 percent in January before a selloff triggered by rising U.S. interest rates and a stronger dollar.