Indonesian assets rebounded Wednesday after officials intensified efforts to calm foreign investors, with the rupiah posting its largest gain in over a year. The 10-year bond yield dropped 15 basis points to 7.26%, while the benchmark stock index climbed 3.4% as the currency strengthened up to 0.9%.

Central bank governor Perry Warjiyo led a late Tuesday call with US and European investors to address concerns about recent rate increases, followed by another scheduled discussion Wednesday morning in Asia. Finance minister Purbaya Yudhi Sadewa reassured lawmakers that he would maintain the budget deficit limit, a key concern for fund managers worried about fiscal discipline.

The recovery provided relief after Indonesian markets fell out of favor with global investors amid concerns over President Prabowo Subianto's increasingly interventionist economic agenda. Foreign investors have pulled a net $3.7 billion from local equities and $594 million from bonds this year, reflecting mounting skepticism about policy direction.

Jakarta's outreach campaign appears to be stabilizing sentiment temporarily, but investors remain cautious about whether the government can balance its interventionist rhetoric with market-friendly policies. The central bank's communication strategy will face continued scrutiny as capital flows remain volatile.