Global investors are starting to move their investment portfolios to developing countries, including Indonesia. Accompanied by domestic economic conditions that are relatively stable and have performed quite well amidst the economic slowdown and increasing global uncertainty, capital has flowed rapidly into Indonesia. The government's commitment to maintaining fiscal discipline and managing the current account deficit below the 3% threshold has increased investor confidence in the Indonesian economy. Bank Indonesia's signal to allow the Rupiah to strengthen also encouraged an increase in investors' desire to invest domestically in the short term.
