Foreign Capital Outflow Hits Rp130 Billion in Second Week of December 2025

Capital Market Dynamics

Bank Indonesia reported a Rp130 billion foreign capital outflow from Indonesia's financial markets during the second week of December 2025. According to BI's Communication Department Head, Ramdan Denny Prakoso, foreign investors recorded a net sell of Rp0.13 trillion between December 8-11, 2025. The outflow was primarily driven by a Rp4.12 trillion net sell in BI Rupiah Securities (SRBI), despite net purchases of Rp1.14 trillion in the stock market and Rp2.85 trillion in government bonds (SBN).

Cumulative 2025 Foreign Investment Trends

The capital outflow in the second week of December follows significant foreign investor activity throughout 2025. Cumulative data up to December 11, 2025, shows foreign investors recorded net sales of Rp25.95 trillion in the stock market, Rp3.49 trillion in SBN, and Rp116.34 trillion in SRBI. This substantial withdrawal reflects ongoing dynamics in Indonesia's financial markets.

Market Reactions and Risk Perception

The 5-year Indonesia Credit Default Swap (CDS) premium stood at 72.99 basis points as of December 11, 2025, up from the previous week. This increase indicates growing investor perception of credit risk. Meanwhile, the IDR exchange rate strengthened to Rp16,650 per USD at the opening of trading on December 12, 2025, from Rp16,665 per USD the previous day. The yield on 10-year SBN remained stable at 6.16%.

Government and BI Response

Finance Minister Purbaya Yudhi Sadewa highlighted the role of SRBI in absorbing liquidity, noting that despite government injections of approximately Rp200 trillion into the financial system through state-owned banks, investor funds continued to flow into SRBI. Senior Deputy BI Governor Destry Damayanti explained that SRBI is part of liquidity management and stability measures. She noted that BI has been adjusting SRBI interest rates to attract investment following a 125 bps BI rate cut this year.

Market Implications

The capital outflow and market dynamics underscore the ongoing challenges in maintaining financial stability. BI's continued coordination with the government and other authorities is crucial in managing these flows and ensuring market confidence. The adjustments in SRBI rates are part of a broader strategy to balance liquidity and attract foreign investment.