Moody's Ratings cut Indonesia's rating outlook to negative. The agency cited policy uncertainty and weakening governance under the current administration.
This follows a warning from MSCI Inc. MSCI warned of a potential downgrade of the nation's stocks to Frontier status, citing transparency and liquidity issues.
The yield on Indonesia's benchmark 10-year government bonds rose to its highest level since August. Foreign funds saw a net inflow of US$304 million into Indonesian government bonds on Thursday. This inflow occurred just before the negative outlook announcement.