BUSINESS FINANCE : Finance Markets Are Improving, And As Of 20 February 2023, Sri Mulyani Records Inflows Of IDR 43.9 Trillion

  

Improvements in financial market indicators, according to Finance Minister Sri Mulyani Indrawati, have prompted foreign investors to buy bonds issued by developing markets (EMs), including Indonesia.

Aside from inflows of US$ 7.2 billion or 1.5% from Assets under Management (AuM), the capital flows into the Bonds Market EMs are beginning to exhibit a positive trend as of 2023. In percentage terms, this is higher than inflows into DMs of roughly 0. 8% of AuM.

Despite recent withdrawals, the Indonesian bond market saw inflows totaling IDR 43.9 trillion as of February 20, 2023, according to Sri Mulyani at the KITA APBN Press Conference on Wednesday (22/2).

According to Sri Mulyani, recent outflows have taken place in a number of EMs, noting the Federal Reserve's hawkish attitude (The Fed). In addition, there was an IDR 6.7 trillion exit of government securities (SBN) in February 2023.

Bank Indonesia and banking continue to control the majority of SBN shareholding. However, since the end of 2020, the percentage of foreign ownership has dropped, falling from 25.2% in 2020 to 14.8% as of 20 February 2023.

Sri Mulyani stated that the inflow of foreign funds into Indonesia was beginning to slow down despite improvements in financial market data. Therefore, it is still important to monitor market mood.