Overseas funds make the largest purchase of Indonesian stocks in four months

Golden Ten Data reported on March 4 that as regulatory agencies introduce new measures to enhance the investability of the Indonesian market, the scale of overseas investors buying Indonesian stocks has reached its highest level in more than four months, boosting market sentiment. Compilation data shows that global funds had a net purchase of $203.5 million in Indonesian local stocks on Tuesday, the highest since October 29. Previously, overseas funds flowed out last month after MSCI warned it might downgrade Indonesia to a frontier market, but funds returned in February. Indonesia's decision to lower the information disclosure threshold to 1% is seen as a key step to address MSCI's concerns about transparency and free float issues. By increasing transparency in shareholding structure, regulators hope to avoid potential downgrade risks. Investors are now focusing on whether these measures are sufficient to gain MSCI's support and maintain the momentum of foreign capital inflows.