Global funds hit pause on Indonesia after Prabowo policy changes
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[MELBOURNE / LONDON] Indonesian President Prabowo Subianto’s attempt to engineer an economic renaissance is running up against a hard truth: Investors are not buying the vision he’s selling.Some of the world’s biggest money managers are reticent to rush back into the country’s assets after sweeping changes under Prabowo’s administration sent stocks tumbling by the most since 2011 last month. Investors from Melbourne to London say there are pockets of value but little incentive to load up, according to interviews with 12 buyside firms.Government officials around the world are currently contending with the headache that is US President Donald Trump’s shock tariff hike, which has rocked markets and roiled supply chains. But Prabowo faces the added challenge of trying to manage state finances while pushing forward with his ambitious but expensive high-priority projects. Attracting foreign inflows is particularly crucial at the moment for South-east Asia’s biggest economy. Global volatility...