15 Jun 2026 | News & Feature

TFP W24 2026: Choosing between a stable floor or a higher ceiling

  • The Rupiah staged a relief rally following BI’s surprise rate hike, coinciding with the decline in global oil prices, even as foreign capital inflows remained limited.
  • Market movements last Friday appear to support the argument that fiscal concerns, rather than low yields, are the primary factor behind foreign investors’ subdued appetite for Indonesian sovereign bonds.
  • The tension between foreign capital inflows and the government’s fiscal posture highlights the trade-off between pursuing higher GDP growth and maintaining financial-market stability.