IMF Prediction Makes Foreign Investors Panic

Indonesia Stock Exchange
Indonesia Stock Exchange

It is recorded that many foreign investors have “fled” from the Indonesian stock market. This happened after the International Monetary Fund (IMF) predicted the possibility of a global recession. In fact, this IMF prediction is not without reason.

This forecast from IMF is allegedly based on the continued weakening of the main engines of economic growth in the world, such as the United States (US), China, and Europe.

This sentiment made the JCI fall quite deeply to the level of 6,813.23 or decreased -1.10% in trading last Wednesday (04/01/2022). The JCI had previously risen to its highest price at the level of 6,900.60 and created a transaction value of IDR 9.71 trillion.

One of the reasons for the decline in the JCI that occurred this time was the impact of a fairly large foreign net selling of IDR 437.65 billion in all markets and IDR 498.82 billion in the regular market.

In more detail, 369 shares fell, including blue chip shares that had a large weight on the JCI, especially as BBCA fell -2.34% in yesterday’s trading after foreigners sold their shares net of Rp. 328.16 billion in all markets.

Then followed by state-owned banks which are also rivals, namely BBRI which corrected quite deeply for the class of big cap shares, namely -1.65% after foreign investors sold their shares net of IDR 95.39 billion in all markets and IDR 103.25 billion in the regular market.

The flight of foreign investors from the Indonesian stock market has occurred since last December, market data shows net sales of up to IDR 20.9 trillion. If you add to what happened earlier this year, the value will be more than IDR 21 trillion.

On the other hand, President Joko Widodo or Jokowi has repeatedly mentioned that 2023 is a test year for Indonesia.

“If we look globally, 2022 is a year of turbulence, and 2023 is a year of exams. If we can get through yesterday’s turbulence in 2022, we hope that in 2023 this year will be passed, God willing, it will be easier in 2024,” said Jokowi.

However, Jokowi hopes that Indonesia can still grow at around 5% this year.

Meanwhile, Minister of Finance Sri Mulyani assessed that Indonesia should be grateful to see the momentum of economic recovery that is still maintained amidst the global downturn.

However, she warned that the domestic economy could be affected by global conditions.

“We are not completely immune, or in this case we are not affected by the global atmosphere, there must be an influence,” said Sri Mulyani at the OUR State Budget Press Conference, quoted on Thursday (5/1/2023).

However, she believes that the resilience of our economy appears to be quite good, with maintained growth. Evidently, economic conditions were relatively good in the fourth quarter of 2022. Sri Mulyani is sure that these conditions provide optimism and trust on the part of the community.