During the first week of January 2024, Indonesia's financial market experienced an influx of foreign capital. Based on Bank Indonesia's (BI) transaction data from January 2 to January 4, 2024, non-residents made net purchases totaling IDR 8.61 trillion. Erwin Haryono, Executive Director and Head of BI's Communication Department, revealed that these net purchases by non-residents occurred across various sectors, including the government bond market (SBN), stock market, and BI's Rupiah Securities (SRBI). He specified that there were net purchases of IDR 5.07 trillion in the SBN market, IDR 1.47 trillion in the stock market, and IDR 2.08 trillion in SRBI.
Despite the influx of foreign capital into the domestic financial market, Indonesia's investment risk premium saw an increase. This was evident in the 5-year Indonesian Credit Default Swap (CDS) premium, which rose to 75.01 basis points from 68.45 basis points recorded on December 29, 2023. Amidst these developments, settlement data from the beginning of 2024 until January 4, 2024, highlighted a net inflow of foreign capital into the SBN, stock market, and SRBI. Specifically, foreign funds amounted to IDR 1.79 trillion in the SBN market, IDR 2.40 trillion in the stock market, and IDR 2.73 trillion in SRBI. The data underscores the foreign capital's positive movement into various sectors of Indonesia's financial market, despite the observed increase in the country's investment risk premium.
