JAKARTA, RAKYAT NEWS – Bank Indonesia (BI) reported a net foreign capital inflow of Rp14.73 trillion into the country’s financial markets between May 19–22, 2025, signaling renewed investor confidence in Southeast Asia’s largest economy.

The central bank’s data showed that government bonds (SBN) attracted the bulk of inflows at Rp14.13 trillion, while the stock market recorded a net inflow of Rp1.54 trillion.

However, outflows from Bank Indonesia Rupiah Securities (SRBI) reduced the total by Rp950 billion.

Year-to-Date Capital Movements
From January 1 to May 22, 2025, Indonesia saw Rp47.52 trillion exit its stock market and Rp14.52 trillion withdrawn from SRBI. However, government bonds remained resilient, drawing Rp40.06 trillion in foreign investment.

Indonesia’s 5-year credit default swap (CDS), a key risk indicator, rose slightly to 82.20 basis points from 81.56 bps a week earlier. Meanwhile, the rupiah strengthened to Rp16,300 per US dollar on Friday, up from Rp16,325 the previous day.

The US Dollar Index (DXY), which tracks the greenback against major currencies, weakened to 99.96, supporting emerging-market assets. Indonesia’s 10-year bond yield dipped to 6.82%, while the US 10-year Treasury yield climbed to 4.529%.

BI reaffirmed its commitment to policy coordination with the government to safeguard economic stability. The bank has been actively purchasing government bonds, with Rp96.41 trillion acquired as of May 20, 2025, to ensure market liquidity.

Despite global uncertainties, Indonesia’s macroeconomic fundamentals remain strong, supported by controlled inflation and a trade surplus. Earlier this month, BI adjusted its 2025 growth forecast but emphasized the economy’s underlying strength.