JAKARTA – Foreign investors have withdrawn IDR 28.10 trillion from the Indonesian stock market since the beginning of the year until 20 March 2025, according to data from Bank Indonesia (BI).

These investors redirected their funds to SBN (Indonesian government bonds) and SRBI (Bank Indonesia Rupiah Securities) during this period.

According to BI data, foreign investors recorded a net buy of IDR 23.87 trillion in SBN instruments. Meanwhile, the total foreign net buy in SRBI instruments reached IDR 8.58 trillion.

This foreign buying activity in both fixed-income instruments contrasts with the rise in Indonesia's 5-year Credit Default Swap (CDS) premium to 88.51 basis points (bps) as of 20 March 2025. In the previous week, the CDS premium for the same period was at 81.20 bps.

An increase in the premium generally signals a higher risk of default for assets protected by the CDS.

In response, BI will continue to strengthen coordination with the government and related authorities and optimise its policy mix strategy.

“To support the resilience of Indonesia's external economy,” stated Ramdan Denny Prakoso, Executive Director of the BI Communications Department, in an official statement quoted on Monday (24/3). (KR/ZH)