Jakarta (Indonesia Window) – Indonesia’s central bank Bank Indonesia (BI) recorded that foreign capital outflows from the domestic financial market amounted to 5.76 trillion rupiahs (some 403.6 million U.S. dollars) during the last week of September 2021.

"It consists of net selling on ​​the government securities market of 4.69 trillion rupiahs (about 328.6 million dollars) and net selling on the stock market of 1.07 trillion rupiahs (about 74.9 million dollars)," BI said in a Report on the Development of the Rupiah Stability Indicator, which was announced here, Friday (Oct. 1).

Based on the current year since the beginning of the year, the non-resident investors recorded a net purchase of 9.28 trillion rupiahs (year to date/ytd) or some 650.2 million dollars.

In line with the movement of foreign capital flows, the central bank also noted that the investment risk premium or Indonesia’s credit default swap (CDS) premium with a five-year tenor rose to 80.69 basis points (bps) as of September 30, 2021, from 78.43 bps as of September 24, 2021.

Meanwhile, the yield on 10-year tenor of government securities on Thursday (Sep. 30) rose to 6.35 percent, and declined to 6.32 percent on Friday (Oct. 1).

For comparison, as of Thursday (Sep. 30), the 10-year tenor of U.S. Treasury bond yield was 1.487 percent.

The central bank said it would continue to strengthen coordination with the government and relevant authorities to closely monitor the dynamics of the spread of COVID-19 and its impact on Indonesia’s economy from time to time.

In addition, further policy measures should also be taken to maintain macroeconomic and financial system stability, as well as to support Indonesia's economic growth to remain sound and resilient.

Reporting by Indonesia Window