IDR 4.28 trillion in Hot Money Flows into Indonesia in the fourth week of Dec 2023

INVESTMENT-JAKARTA. There has been an influx of foreign capital into the domestic financial market in the fourth week of December 2023.

Based on data from Bank Indonesia (BI) for the period of 27th to 28th December 2023, non-residents in the domestic financial market recorded a net purchase of IDR 4.28 trillion.

Executive Director of BI's Communication Department, Erwin Haryono, stated that foreign funds entered the State Securities (SBN) market, the stock market, as well as the Bank Indonesia Rupiah Securities (SRBI).

"Non-residents in the domestic financial market recorded a net purchase of IDR 0.30 trillion in the SBN market, a net purchase of IDR 2.00 trillion in the stock market, and a net purchase of IDR 1.98 trillion in SRBI," Erwin wrote in his official statement, Friday (29/12).

Meanwhile, the premium for Indonesia's 5-year credit default swap (CDS) as of 28th December 2023 was 68.92 bps, a limited increase compared to 68.72 bps as of 22nd December 2023.

Furthermore, with these developments, based on settlement data from the beginning of 2023 until 28th December 2023, foreign funds have entered the SBN and SRBI markets on a net basis. It was recorded that non-residents made a net purchase of IDR 80.45 trillion in the SBN market and a net purchase of IDR 52.81 trillion in SRBI.

Meanwhile, settlement data for the year to date shows that foreign funds have withdrawn from the stock market by IDR 10.74 trillion.