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BI records Rp 13 trillion in capital inflow
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Bank Indonesia Governor Perry Warjiyo (Antara/Sigid Kurniawan)
B
ank Indonesia has recorded Rp 13 trillion (US$937.30 million) in capital inflow after having increased its seven-day reverse repo rate, indicating a return of market players’ confidence in the country's economy.
“Based on our monitoring since May 24, there had been capital inflow, particularly through the purchase of government debt papers. The inflow had reached Rp 13 trillion,” Bank Indonesia Governor Perry Warjiyo said while attending a hearing at the House of Representatives in Jakarta on Tuesday.
Bank Indonesia increased its rate by 25 basis points (bps) on May 17 to 4.5 percent under the leadership of then-BI governor Agus Martowardojo.
The policy was made to help the rupiah, the exchange rate of which persistently weakened to over Rp 14,000 against the US dollar following economic growth in the United States.
Days after his inauguration as the central bank chief, Perry increased on May 30 the reference rate by another 25 bps when he saw that the first increase could not help the rupiah to avoid external pressure.
Perry said that the capital inflow was supported by an auction of government debt papers by the Finance Ministry's Financial Risk Management Directorate General.
He said that the inflow indicated that market players were gradually beginning to show confidence in the Indonesian economy amid global economic uncertainties. (bbn)
