BI Records Foreign Capital Flows Fleeing Up to IDR 950 Billion in a Week

JAKARTA - Bank Indonesia (BI) reported net foreign capital outflows reaching IDR 950 billion from the domestic financial market during the period May 2-5, 2023.

"Based on transaction data from May 2-5, 2023, non-residents on the domestic financial market sold IDR 0.95 trillion net," BI Communications Department Executive Director Erwin Haryono quoted Antara.

The net outflow of foreign capital consisted of IDR 550 billion on the Government Securities (SBN) market and IDR 400 billion on the stock market.

From January 1 to May 4, 2023, net foreign capital entered the SBN market in the amount of IDR 63.29 trillion, and IDR 16.25 trillion in the stock market.

In addition, Erwin said the yield on Indonesia's 10-year SBN fell to a level of 6.39 percent. The yield level for Indonesian bonds is more attractive and far from the yield for United States bonds or the 10-year UST Treasury Note which also fell to a level of 3.379 percent.

Meanwhile, Indonesia's 5-year investment risk premium (credit default swap/CDS) rose to a level of 99.04 basis points (bps) as of May 4, 2023 from 92.08 bps as of April 28, 2023.

Meanwhile, the rupiah exchange rate opened higher to IDR 14.665 per US dollar on Friday (5/5) compared to the position at the close of trading on Thursday (4/5) of IDR 14.675 per US dollar.

Meanwhile, the US dollar index (DXY) weakened to a level of 101.40. The US dollar index is an index that shows the movement of the dollar against six other major currencies, namely the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.

Bank Indonesia continues to strengthen coordination with the government and relevant authorities and optimize the policy mix strategy to maintain macroeconomic and financial system stability to support further economic recovery.