In addition to low interest rates, Bank Indonesia also returned some of the coupon payments received from the purchase of Government Securities worth Rp58 trillion for the 2021 State Budget and Rp40 trillion for the 2022 State Budget, thus avoiding an interest expense in the State Budget for the Government.
Western, especially American investors, diversified some of their huge capital gains of the 1990s into East Asian investments. In hindsight, it is evident that those economies could not provide adequate profitable opportunities at reasonable risk to absorb such a surge in funds. This surge, together with distortions caused by government planning, has resulted in huge losses.