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$323.4M in foreign capital pours out of domestic market: Bank Indonesia
Indonesia’s financial market faces a net foreign capital outflow of Rp 5.13 trillion (US$323.4 million) as of early December 2024, the latest report from BI has said.
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Workers clean the IDX logo under a screen with Jakarta Composite Stock Price Index (JCI) information on Oct. 18, 2024, at the Indonesia Stock Exchange in Jakarta. Indonesia’s financial market faces a net foreign capital outflow of Rp 5.13 trillion (US$323.4 million) as of Dec. 5, 2024, the latest report from Bank Indonesia (BI).said on Dec. 8, 2024. (Antara Foto/Aprillio Akbar)
B
ank Indonesia (BI) reported a net foreign capital outflow in the domestic financial market amounting to Rp 5.13 trillion (US$323.4 million), based on transaction data from Dec. 2–5.
BI communication department executive director Ramdan Denny Prakoso said that the figure comprised a net foreign capital outflow of Rp 1.37 trillion in the government securities (SBN) market and Rp 5 trillion ($315.21 million) in BI Rupiah Securities (SRBI), while the equity market saw a net foreign capital inflow of Rp 1.24 trillion.
With this development, from Jan. 1 to Dec. 5, 2024, the total net foreign capital inflow amounted to Rp 22.13 trillion in the equity market, Rp 32.33 trillion in the SBN market and Rp 175.89 trillion in SRBI, Ramdan said on Sunday in Jakarta, as quoted by the Antara news agency.
In the second half of 2024, non-Indonesian residents recorded net purchases of Rp 21.79 trillion in the equity market, Rp 66.29 trillion in the SBN market and Rp 45.54 trillion in the SRBI market.
Ramdan said that Indonesia's five-year credit default swap (CDS) premium stood at 70.91 basis points (bps) as of Dec. 5, down from 74.01 bps on Nov. 29. BI noted that this decline indicates a lower risk of sovereign credit default, which can boost investor confidence in riskier investment instruments.
The rupiah has remained stable at around Rp 15,800 per United States dollar since last week, including during the first week of December 2024.
Meanwhile, the yield on Indonesia's 10-year SBN also saw an increase, reaching 6.89 percent at the close of trading on Thursday. The slight rise continued during the market opening on Friday, moving up to 6.9 percent.
“Bank Indonesia continues to strengthen coordination with the government and related authorities while optimizing its policy mix strategy to support Indonesia’s external economic resilience,” said Ramdan, as quoted by bisnis.com.
Meanwhile, Permata Bank projects that Indonesia's economy will grow by 5.15 percent in 2025. This forecast was presented through the Permata Bank Institute for Economic Research (PIER) in its 2025 Economic Outlook report, launched on Dec. 3.
PIER also projects that Indonesia's household consumption will grow by around 5 percent next year. At the same time, investment activity is expected to grow by approximately 5 percent.
