Foreign Investors Continue to Exit the Indonesian Stock Exchange

Foreign investors are still seen exiting the Indonesia Stock Exchange (IDX) despite Moody's Investor Service raising Indonesia's rating to Baa2 from Baa3 last weekend. Based on Bloomberg data this week, foreign investors still recorded net selling, both in the stock market and the domestic bond market.

From April 16-18, 2018, foreign investors recorded net sales of Rp 1.51 trillion. As a result, month-to-date (MTD) net selling by foreign investors on the Jakarta exchange reached Rp 4.5 trillion, and year-to-date (YTD) has reached Rp 28 trillion. In fact, over the past 12 months, foreign funds exiting the domestic stock market reached Rp 84 trillion. This outflow of hot money is not only occurring in the Jakarta exchange but also in India, Taiwan, and Thailand. Meanwhile, foreign investors are seen entering the Japanese market alongside rising stock prices on the Tokyo Stock Exchange.

Foreign investors also recorded net selling of Rp 780 billion in the government bond market from April 16-17, 2018. However, month-to-date (MTD), there was net buying by foreign investors worth Rp 11.19 trillion, and year-to-date (YTD) it reached Rp 33.53 trillion.