Foreign Portfolio Investment Reaches US$8.4 billion
16 May 2015 18:30 WIB
TEMPO.CO, Jakarta - The foreign portfolio investment into Indonesia in the first quarter of 2015 totaled US$8.4 billion, increasing from US$62 million in the fourth quarter of 2015.
Based on the Indonesia’s Balance of Payment (BOP) report released by Bank Indonesia, the increasing foreign portfolio investment was triggered by increasing foreign net buy of US$4 billion worth of state bonds (SUN) as one of fiscal financing sources.
“Amid global financial market’s uncertainty, non-resident investors has continued to increase their domestic bonds ownership motivated by optimism on the domestic economic condition,” Bank Indonesia said as quoted by Bisnis.com on Saturday, May 16, 2015.
Foreign investors conducted net buy for domestic stocks following net sales in the fourth quarter of 2014. The foreign fund outlet in the first quarter of 2015 increased following global corporate bond issuance.
During the first quarter of 2015, foreign investors conducted net sales for rupiah portfolio instruments, particularly state bonds and stocks in March 2015, because of a concern over an increase in Fed Fund Rate. In terms of assets, the transactions of portfolio investment in the first quarter 2015 recorded a surplus of US$0.4 billion following Indonesia’s net sales for foreign portfolio instruments.
By calculating the portfolio investment assets, the net portfolio investment in the first quarter of 2015 recorded a surplus of US$8.9 billion, increasing from the surplus of US$1.9 billion in the previous quarter.
In the first quarter of 2015, the foreign fund for rupiah-denominated state bonds reached US$3 billion, increasing from US$1.0 billion in the fourth quarter of 2014.
Based on the condition, foreign ownership of rupiah-denominated state bonds by the end of the first quarter 2015 increased to US$36.6 billion, accounting for 42.8 percent of the total state bonds, from US$35.5 billion that accounted for 41.6% in the previous quarter.
Contrary to the state bonds development, foreign investors in the first quarter of 2015 conducted net sales of US$124.9 million worth of Bank Indonesia Certificates (SBI) following net buy of US$66 million in the previous quarter.
“The condition caused SBI foreign ownership to significantly drop to 0.2 percent from 2.1 percent previously,” Bank Indonesia said.
BISNIS.COM
