The impact of the release of foreign capital (capital outflow) signifies the confidence of fading against Indonesia – Indonesia’s latest viral

VIRALTERKINI.ID, JAKARTA – The impact of the release of foreign capital (capital outflow) from a country can be very significant, especially for developing countries like Indonesia.

The impact includes the potential for weakening currency exchange rates, decreased financial asset prices, and disruption of market stability.

In addition, the release of foreign capital can also reduce investor confidence in the country’s economy.

Bank Indonesia (BI) recorded the flow of foreign capital out of the domestic financial market of Rp2.04 trillion in the third week of this month, namely the transaction period 16-19 June 2025.

Director of the BI Communication Department Bambang Pramono through his statement in Jakarta, Friday (6/20), detailed that the amount consisted of foreign capital out in the Stock Market and Bank Indonesia (SRBI) stock market (SRBI) amounting to Rp1.78 trillion and Rp3.72 trillion.

However, there is a foreign capital entering clean in the State Securities Market (SBN) of Rp3.47 trillion. Thus, foreign capital came out clean to around Rp2.04 trillion.

Since the beginning of this year to 19 June 2025, foreign capital outflows in the stock market and SRBI each amounting to Rp47.15 trillion and Rp28.69 trillion. While foreign capital entered the net in the SBN market amounting to Rp44.93 trillion.

Investment Risk Premiums (Credit Swaps/CDS) Indonesia 5 years recorded up from 76.93 Base Point (BPS) as of June 13, 2025 to 81.59 BPS as of June 19, 2025.

The rupiah exchange rate opened strengthened at the level of Rp16,355 per US dollar (US) on Friday (6/20), compared to the position at the close of trading Thursday (6/19) at the level of Rp16,390 per US dollar.

The US dollar index (Dxy) was recorded to strengthen to the level of 98.91 at the end of trading on Thursday (6/19).

Dxy is an index that shows the movement of US dollars to six main country currencies including Euro, Yen Japan, British Pound, Canadian Dollar, Sweden Krona, and Swiss Franc.

Yield yields or 10 -year SBN yields rose to the level of 6.75 percent on Friday (6/20) morning, from the previous 6.73 percent at the end of trading on Thursday (6/19).

While the 10 -year US Treasury Note yield fell to the level of 4.391 percent at the end of trading on Thursday (6/19).

Bank Indonesia also continues to strengthen coordination with the government and related authorities and optimize the policy mix strategy to support the external resilience of Indonesia’s economy. (RS)