Foreign investors start investing in Indonesia towards the end of 2022. Data from Bank Indonesia (BI) as of 5 – 8 December 2022 show non-resident investment in the domestic financial market recorded a net purchase of IDR 1.77 trillion.
Hundreds of trillions of capital inflows have returned to color the State Securities (SBN). The transaction includes a net purchase of IDR 8.45 trillion on the Government Securities (SBN) market. Meanwhile, the stock market still experienced a net sale of IDR 6.68 trillion.
This reversal actually occurred in November 2022. Based on data from the Directorate General of Financing and Risk Management (DJPPR), during November there was an inflow in the bond market of IDR 23.7 trillion.
This is of course good news indicating that investor sentiment towards SBN is starting to improve. Not only in the secondary market, but bond auctions are also starting to gain interest.
The number of bids from foreign investors at the auction for Government Bonds (SUN) on Tuesday (23/11/2022) reached IDR 6.4 trillion. This amount has almost doubled compared to the previous auction which was recorded at IDR 3.62 trillion and tripled compared to the auction the previous month, namely September 27, 2022 (IDR 1.7 trillion).
At the last auction on December 3, the number of foreign bids increased again to almost Rp. 7 trillion.
From DJKN records, the number of bids from foreign investors at the auction for Government Bonds (SUN) on Tuesday (23/11/2022) reached IDR 6.4 trillion. This amount has almost doubled compared to the previous auction which was recorded at IDR 3.62 trillion and tripled compared to the auction the previous month, namely September 27, 2022 (IDR 1.7 trillion).
In fact, at the last auction on December 3, the number of foreign bids increased again to almost Rp. 7 trillion.
Several incidents are believed to be the reason for the return of foreign investors to Indonesia. It all started with a statement by the Governor of The Fed, Jerome Powell, who said that the US central bank would put the brakes on increasing interest rates. This means that the Fed will not be as aggressive as before.
Powell confirmed that smaller interest rate hikes are likely to come even as he sees progress in the fight against inflation.
In November, Powell also said he saw the central bank in a position to reduce the size of a rate hike as early as next month.
 as of 5 - 8 December 2022 show..){kind=link}