The Indonesian Central Bank, Bank Indonesia (BI), has reported that foreign capital inflows into the Indonesian financial market reached Rp10.97 trillion during the period of 27-30 March 2023.
According to Erwin Haryono, Head of BI’s Communications Department, “Based on transaction data for 27-30 March 2023, non-residents in the domestic financial market made net purchases of Rp10.97 trillion.”
He further explained that this amount comprises net purchases of Rp8.37 trillion in the government securities market and net purchases of Rp2.60 trillion in the stock market.
Furthermore, based on settlement data from the beginning of the year until 30 March, foreign capital inflows into the Indonesian financial market have reached Rp54.11 trillion in the government securities market and net purchases of Rp1.45 trillion in the stock market.
In line with these developments, BI also reported that Indonesia’s 5-year investment risk premium, as measured by credit default swaps (CDS), decreased to 97.3 basis points (bps) as of 30 March 2023, down from 108.91 bps as of 24 March 2023.
Erwin also stated that as of 30 March 2023, the rupiah closed at Rp15,045 per US dollar. The yield on 10-year government securities rose to 6.80%, while the yield on US Treasury 10-year bonds rose to 3.549%.
The rupiah exchange rate managed to strengthen below the level of Rp15,000 until the end of trading on Friday (31/3). The rupiah closed up 0.34% or 51.5 points at Rp14,995 per US dollar.
A strengthening trend also occurred in several other Asian currencies, with the Thai baht up 0.08%, the Chinese yuan up 0.04%, the Indian rupee up 0.10%, the Philippine peso up 0.10%, and the Malaysian ringgit up 0.09%.
In addition, the Korean won weakened by 0.20% against the US dollar. Other currency weaknesses were followed by the Singapore dollar down 0.12%, the Japanese yen down 0.32%, and the Taiwan dollar down 0.10%.
Erwin said the central bank would continue to strengthen coordination with the government and related authorities to optimize policy mix.
“Bank Indonesia will continue to strengthen coordination with the government and related authorities and optimize the policy mix strategy to maintain macroeconomic and financial stability in order to support further economic recovery,” he said.