JAKARTA (Yosefardi) – Foreign investors invested Rp40 trillion in domestic bonds during January 2014, representing 40.2% of total bonds issuance. Bonds attracted more foreign funds as they offer higher return than stocks.
In stocks, foreign investors booked net buy of Rp335.3 billion on Tuesday (Feb 3), then year to date, their net buy would have reahed Rp554.2 billion.
However, investors are now worring over the currency market as the more supply of government and domestic corporate bonds
would benefit the US dollar, and hurt the rupiah.
If the revision of state budget for 2015 was approved, the bond issuance will reach about Rp460 trillion (Rp30 trillion higher than 2014) to cover the deficit.
Meanwhile, The budget commission of the Lower House of Representatives (DPR) had on Tuesday decided to set the revenue
from oil and gas sector at Rp139.36 trillion on this year’s revised state budget, with cost recovery set at US$14 billion.
The trade ministry also plans to gradually limit imports of some commodities as a strategy to reduce the trade deficit.
The government has so far reduced imports of raw sugar.