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Jakarta Post

Capital inflows reach Rp 14.75t as of Thursday

  • News Desk

    The Jakarta Post

Jakarta   /   Sun, January 20, 2019   /   10:25 am
Capital inflows reach Rp 14.75t as of Thursday Bank Indonesia Governor Perry Warjiyo (Antara/Sigid Kurniawan)

Bank Indonesia (BI) has recorded that capital inflows into the country totaled Rp 14.57 trillion (US$1.03 billion) in the period from Jan. 1 to Thursday.

“Nearly all assets flew in,” BI Governor Perry Warjiyo said on Friday as reported by kontan.co.id, adding that the capital entered Indonesia in the form of government debt papers (SBN) worth Rp 11.48 trillion and shares worth Rp 3.21 trillion.

Perry said it indicated an improvement in global investor confidence in the Indonesian economy in response to the policies introduced by BI, the government and the Financial Service Authority (OJK).

With an improved economic condition, stability could be maintained, while the current account deficit – which is currently higher than 3 percent of gross domestic product (GDP) – could consistently be narrowed, he added.

He added that investor confidence could be seen in the decline of the credit default swap (CDS) spreads – or the difference between the government’s bonds and the US Treasury – that had declined from 126.3 basis points (bps) to 124.1 bps. (bbn)