Sri Mulyani: Capital Outflow Two Times Higher than 2008 Crisis
TEMPO.CO, Jakarta - Indonesia's capital outflow recorded from January until March 2020 has reached Rp145.28 trillion. Finance Minister Sri Mulyani Indrawati said the figure is far higher than that of the 2008 economic crisis and the 2013 taper tantrum.
“It is two times higher,” said Sri in a press conference of the Financial System Stability Committee (KSSK) in Jakarta, Monday, May 11.
The former managing director of the World Bank said the country’s capital outflow during the global economic crisis only stood at Rp69.9 trillion. While in the 2013 taper tantrum, it was recorded at Rp36 trillion.
Sri added that this condition was not just faced by Indonesia. Developing countries were also hit by massive capital outflow due to the Covid-19 pandemic.
According to her, this was attributable to the highest level of investors’ fear in global financial markets in history. Besides, the business confidence index (BCI) and consumer confidence index (CCI) declined.
Therefore, Sri Mulyani opined this situation forced investors to look for safe assets for their own funds, including via cash.