The rapid spread of the COVID-19 pandemic around the world caused a global financial market panic in March 2020, resulting in the Volatility Index (VIX) and Credit Default Swap (CDS) risk indexes for Indonesia soaring to 83 and 272 from previously 19 and 66 respectively (Graph 5).
The wave of portfolio investment withdrawals from developing countries (Emerging Market Economies - EMEs)  250  Graph 5.Risk Indicators for Global and Indonesian Financial Markets pts  Index  300  90  83 272  80 70 60  200  50  150 100 50 0  40 78 30  66  24 20 10  19 2  3  4  5  CDS Indonesia  6 2020  7  8  9  10  11  0  VIX Index (rhs)  Data as of 20 November 2020 Source: Bloomberg, compiled  9  BANK INDONESIA’S ANNUAL MEETING 2020  Graph 6.