Capital Outflow Reaches IDR 4.62 Trillion This Week, What Signs?

(Photo: Nova Wahyudi - Antara)

The flow of foreign capital out of the Indonesian financial market, or capital outflow, reached IDR 4.62 trillion this week. Bank Indonesia (BI) said that it came from the state securities (SBN) market.

BI explained that the outflow of foreign capital originating from the state securities market (SBN) reached IDR 3.52 trillion and the stock market was IDR 1.1 trillion per transaction data 13-16 February 2023.

The outflow of foreign funds is thought to be related to the situation in the United States (US), which has not fully improved in terms of inflation and employment. The US Federal Reserve (the Fed) is expected to raise interest rates another 1 to 2 times.

BI also noted that Indonesia’s 5-year CDS premium fell to 88.73 bps as of 16 February 2023 from 89.30 bps as of 10 February 2023. The 10-year SBN (State Securities) yield rose to 6.71% in line with the UST (US Treasury) yield ) 10 year rose to a level of 3.861%.

However, during 2023, based on settlement data up to. February 16, 2023, there was still an inflow of IDR 45.40 trillion on the SBN market and an outflow of IDR 1.37 trillion on the stock market.

Previously, from 1 January to 16 February 2023, the flow of foreign capital out of SBN amounted to IDR 45.4 trillion. Meanwhile, the flow of foreign capital out of the stock market amounted to Rp 1.37 trillion.

Indonesia’s 5-year credit default swap (CDS) position fell from a level of 89.30 basis points as of 10 February 2023 to 88.73 bps as of 16 February 2023. Meanwhile, the US dollar index (DXY) strengthened to a level of 103.86.

BI Communication Department Executive Director Erwin Haryono, Saturday (18/2/2023), said, “BI continues to strengthen coordination with the government and related authorities and optimize the policy mix strategy to maintain macroeconomic and financial system stability to support further economic recovery.”

Meanwhile, as of Friday (17/2/2023), the rupiah exchange rate was at IDR 15,170 per US dollar, weakening from Thursday’s position (16/02/2023) which was IDR 15,153 per US dollar. At the same time, the 10-year SBN yield fell to a level of 6.7%.