USD 3.8 billion Capital Outflow During Q1 2008
Mei 5, 2008 1 Komentar
USD 3.8 billion Run Away During Q1 2008
It could be the reason, why Indonesian rupiah not getting strong while US Dollar weaken against other currency all over the world since last year.
Bank Indonesia (BI) data shows the capital outflow are capital for investment other than foreign direct investment (FDI).
The capital outflow tendency had start from early 2008. in February, Indonesia composite index of Indonesia stock exchange down to 7% in a day. from January to April, market capitalization descend about IDR 268 trillion.
Other indication of capital outflow are State Debt Securities (SUN) loss of value in April. therefore, to guard the value, Indonesian government promise to buyback.
Though, there are many indication on capital outflow but BI object that the net outflow trigger is outflow of short term investment fund-hotmoney.
Triono Widodo Director for Economic and Monetary statistic said capital outflow are including government and private payment obligation.
BI admit global financial market turmoil also sucking out hotmoney from indonesia stock and financial market. But BI data shows, Q1 2008 net outflow from financial market only USD 14 million.
But different opinion from Djoko Retnadi BRI economist said hot money outflow because the owner need liquidity, especially after subprime mortgage crisis in US since mid 2007 that made loss to some financial giants.
Because the reason for capital outflow is liquidity situation of the owner, so government cannot control that outflow and this trend could continue till next quarter.
But, this situation hope will lead BI to increase BI rate in next BI governor council meeting.