Antara, Jakarta – Indonesia's recent investor roadshow in the United States may support short-term market sentiment, but stronger policy credibility will be needed to drive lasting structural impact, an economist said.
M Rizal Taufikurahman, Head of Macroeconomics and Finance at the Institute for Development of Economics and Finance (Indef), said meetings between Indonesian officials and global financial players could provide a temporary boost, but fall short of altering underlying fundamentals.
"Meetings between the finance minister and Bank Indonesia governor with global players such as HSBC, BlackRock, and the IMF generate short-term positive sentiment, not fundamental or structural change," Rizal said.
He expects market reactions to emerge in the coming days to weeks. However, investors will continue to scrutinize real economic data and test whether policy narratives align with on-the-ground fundamentals.
Indonesia's macroeconomic conditions remain relatively stable, according to Rizal. Inflation stood at 3.48% year-on-year in March 2026, while state revenue grew 10.5% yoy to Rp 574.9 trillion ($33.53 billion) as of March 31, 2026.
Still, several pressures persist. The rupiah recently weakened to around Rp 17,100 per US dollar, foreign exchange reserves declined from $151.9 billion to $148.2 billion at end-March, government bond yields have trended upward, and concerns linger over the fiscal policy outlook.
"This means the meetings serve as temporary confidence signaling, not a game changer for the domestic market," he said.
Rizal added that such efforts are insufficient to fully restore investor confidence, stressing the need for concrete and consistent policy implementation.
He underscored the importance of maintaining fiscal credibility, including transparent and accountable deficit management, while avoiding instruments that could heighten market risk perception.
Stronger coordination between fiscal and monetary policy is also needed to stabilize the rupiah without excessively depleting foreign reserves, he said.
"In conditions like this, investor confidence is not built through roadshows, but through policy credibility that is consistent, measurable, verifiable, and tested by the market," Rizal said.
"Without concrete measures, meetings with global investors risk becoming signals without structural substance, with effects that fade quickly once markets refocus on fundamentals," he added.
Finance Minister Purbaya Yudhi Sadewa and Bank Indonesia Governor Perry Warjiyo are currently on a US roadshow this week, seeking to reassure global investors about Indonesia's macroeconomic and fiscal resilience.
Source: https://jakartaglobe.id/business/us-roadshow-not-a-game-changer-without-policy-credibility-indef-say