AIIndonesia’s bond market, the worst performer in Asia, may bounce back as a new central bank chief is expected to support the currency while authorities address concerns about fiscal stability, analysts said. Robeco sees buying opportunities in the Southeast Asian country’s longer-dated debt, which is typically less volatile. Citigroup Inc. stated that Bank Indonesia’s stability measures and the wide gap between local yields and those in the US appear to be successfully luring back foreign money.

The potential recovery is seen as a positive shift following the challenging period. Analysts note that the bond sector has faced headwinds recently, but structural changes offer hope. The combination of new leadership and monetary policies creates conditions for renewed investor interest.

International firms highlight specific areas of opportunity. Robeco identifies longer-dated debt as particularly attractive due to its lower volatility profile. Meanwhile, Citigroup emphasizes how Bank Indonesia’s actions, alongside significant yield differentials compared to U.S. rates, are driving foreign capital returns to the market.