The Indonesian Central Bank (BI) recorded IDR 8.61 trillion (US$ 554 million) of foreign capital inflows into the domestic financial market in the period of January 2-4, 2024.
Erwin Haryono, Executive Director of the BI Communication Department, said the foreign capital inflows were recorded in the government bond (SBN) market, stocks, and the Indonesian Central Securities (SRBI).
“Recorded net purchases of IDR 8.61 trillion consist of net purchases of IDR 5.07 trillion in the SBN market, net purchases of IDR 1.47 trillion in the stock market, and net purchases of IDR 2.08 trillion in SRBI,” said Erwin.
Based on transaction data until January 4, 2024, the total net foreign capital inflow in the SBN market reached IDR 1.79 trillion. In the stock market, it reached IDR 2.40 trillion, and in SRBI, it amounted to IDR 2.73 trillion.
Meanwhile, the realization of Indonesia’s 5-year credit default swaps (CDS) risk premium as of January 4, 2024, reached 75.01 basis points (bps). This value increased compared to December 29, 2023, which was 68.45 bps.
On the other hand, the rupiah at the beginning of trading on January 5 opened at IDR 15,490 per US dollar, lower than the closing rate of IDR 15,485 per US dollar on January 4, 2024.
The US Dollar Index (DXY) strengthened to the level of 102.42 on the same day. DXY is an index that reflects the movement of the dollar against six major currencies such as the euro, yen, pound sterling, Canadian dollar, and Swiss franc.
Erwin also revealed that the yield on 10-year SBN rose to 6.66 percent on January 5, 2024. This was followed by the yield on 10-year US Treasury Note (UST) which increased to 3.999 percent.
With this realization, Erwin emphasized that BI will continue to strengthen coordination with the government and relevant authorities and optimize policy mix strategies.
“This is aimed at maintaining macroeconomic stability and the financial system to support further economic recovery,” said Erwin.
