Tempo are reporting that based on transaction data compiled by Bank Indonesia (BI) non-residents in the domestic financial market made a net purchase of IDR 7.10-trillion in the second week of July 2023, indicating foreign capital entering Indonesia.
“This consists of a net purchase of IDR 6.54-trillion in the government bond market (SBN) and a net purchase of IDR 0.56-trillion in the stock market,” said Erwin Haryono, Head of the Communications Department of BI, as quoted from the official statement on Friday, July 14, 2023.
This means that there was a foreign capital inflow of IDR 6.54-trillion into the Indonesian government bond market and IDR 0.56-trillion into the Indonesian stock market in just one week, report Tempo. Meanwhile, the 5-year credit default swaps (CDS) risk premium for Indonesia decreased from 88.11 basis points as of July 7, 2023, to 80.26 basis points as of July 13, 2023.
Tempo report that as of July 13, 2023, based on settlement data, non-residents recorded a net purchase of IDR 81.21-trillion in the government bond market and a net purchase of IDR 14.59-trillion in the stock market during 2023.
In addition, BI also reported that the exchange rate of the Indonesian rupiah at the opening of trading on Friday, July 14, strengthened to IDR 14,950 per US dollar from the previous IDR 14,965 per US dollar at the close of trading on Thursday, July 13, say Tempo.
Furthermore, the yield of 10-year government bonds (SBN) decreased from 6.16-percent on Thursday to 6.13-percent on Friday, July 14.