Jakarta (Indonesia Window) – Indonesia’s central bank, Bank Indonesia (BI), recorded foreign capital outflow from the domestic market amounting to 1.68 trillion rupiahs (about 117.1 million U.S. dollars) in the first week of 2022, or between January 3 and 6, 2022.

The central bank also noted that the foreign funds coming out of the state securities market amounted to 2.93 trillion rupiahs (some 204.3 million dollars), but the capital inflow to the stock market was worth 1.25 trillion rupiahs (some 87.1 million dollars), Head of Executive Director of the BI’s Communications Department Erwin Haryono said in an official statement here on Friday (Jan. 7).

Thus, he added, from January 1 to 6, 2022, there were net foreign capital inflow of 5.33 trillion rupiahs (about 371.6 million dollars) in the state securities market (SBN) and net foreign capital outflow of 600 billion rupiahs (about 41.8 million dollars) in the stock market.

The central bank noted that Indonesia's five-year credit default swap (CDS) risk premium rose to 77.27 basis points (bps) as of January 6, 2022 from 73.55 bps as of December 31, 2021.

Meanwhile, the 10-year Indonesian SBN yield rose from 6.37 percent at the end of Thursday (Jan. 6), to 6.42 percent on Friday morning.

The yield position is still quite far when compared to the 10-year tenor United States (US) bond interest rate which was recorded to have risen to the level of 1.72 percent.

On the other hand, Erwin said the rupiah exchange rate opened at the (bid) level of 14,360 rupiahs per U.S. dollar on Friday, slightly strengthened from 14,390 rupiahs per U.S. dollar at the close of Thursday afternoon (Jan. 6).

The U.S. dollar index (DXY) also strengthened to 96.32 at the close of US trading on Thursday.

DXY is an index of the dollar’s movement against six other major currencies, namely the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.

Reporting by Indonesia Window