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The Indonesian Financial Market Has Experienced A Loss Of IDR 9.61 Trillion In Foreign Capital Within A Week

Bank Indonesia (BI) has reported a significant outflow of foreign capital from the domestic financial market over the past week. According to transaction data from February 10 to 13, 2025, net sales by foreign investors (non-residents) amounted to Rp9.61 trillion. 

The withdrawal of foreign funds from the domestic financial market this week was primarily attributed to the Securities Rupiah Bank Indonesia (SRBI), which experienced an outflow of Rp4.68 trillion. 

Additionally, the stock market recorded an outflow of Rp2.42 trillion, while the Government Securities (SBN) market saw a decrease of Rp2.51 trillion. 

"Throughout 2025, as of February 13, 2025, non-residents have recorded a net sale of Rp7.59 trillion in the stock market, a net purchase of Rp10.11 trillion in SBN, and a net purchase of Rp4.60 trillion in SRBI," stated Ramdan Denny Prakoso, Executive Director of BI's Communication Department, as cited in the release on the Development of Rupiah Stability Indicators on Saturday, February 15, 2025. 

Furthermore, Indonesia's five-year Credit Default Swap (CDS) premium decreased to 72.22 basis points (bps) as of February 13, 2025, down from 74.22 bps on February 7, 2025. The CDS serves as an indicator of the investment risk associated with SBN. 

A higher CDS score indicates a greater risk of investing in SBN, while a lower score suggests reduced investment risk. 

Rupiah Strengthens 

The outflow of foreign capital from the domestic financial market did not weaken the exchange rate of the rupiah against the United States dollar. In fact, the rupiah managed to appreciate against the American currency. 

It is well-known that foreign capital flows within the country are closely linked to exchange rate movements. One of the key factors influencing foreign capital flows is investor confidence, which also plays a significant role in exchange rate fluctuations. 

Tag: Bank Indonesia