Bank Indonesia Reports Record Inflow of Foreign Capital Amid Economic Resilience

JAKARTA, RAKYAT NEWS – Bank Indonesia (BI) has announced a significant influx of foreign capital into Indonesia, with net foreign investment reaching Rp25.60 trillion during the period from September 17 to 19, 2024.

Head of the BI Communication Department Erwin Haryono in Jakarta, Friday, said that the value consisted of a net inflow of foreign capital in the stock market of IDR 4.19 trillion, Government Securities (SBN) of IDR 19.76 trillion, and in Bank Indonesia Rupiah Securities (SRBI) of IDR 1.66 trillion.

This surge reflects growing investor confidence in the Indonesian market and highlights the country’s resilience amidst global economic fluctuations.

The influx is divided into several segments: Rp4.19 trillion flowed into the stock market, Rp19.76 trillion into Government Securities (SBN), and Rp1.66 trillion into Bank Indonesia’s Rupiah Securities (SRBI).

These numbers underscore a robust interest from foreign investors across various financial instruments.

Since the beginning of September, the total net foreign investment in the SBN market has risen to Rp21.39 trillion, while the stock market has attracted Rp51.85 trillion, and the SRBI has seen an impressive Rp186.85 trillion in investment. These figures indicate a strong appetite for Indonesian assets, signaling positive market sentiment.

The risk premium for Indonesian investments, measured by the five-year Credit Default Swaps (CDS), has decreased to 63.41 basis points as of September 19, down from 67.46 basis points earlier in the month. This decline in risk perception reflects an increasingly stable outlook for Indonesia’s economy.

The Indonesian rupiah has also shown signs of strengthening, opening at Rp15,100 per U.S. dollar on September 20, an improvement from the previous day’s close of Rp15,230. This exchange rate stability is a positive sign for investors and further encourages foreign capital inflow.

BI continues to coordinate with the government and relevant authorities to optimize policy strategies that bolster Indonesia’s external economic resilience. This collaborative approach is essential in maintaining investor confidence and promoting sustainable economic growth.

The recent surge in foreign investment not only highlights Indonesia’s attractive market but also reinforces the nation’s commitment to fostering a conducive environment for both domestic and international investors. With ongoing efforts to enhance economic stability, Indonesia is poised for continued growth in the coming months. (Uki Ruknuddin)