The Jakarta Post
Bank Indonesia (BI) has recorded nearly Rp 91 trillion (US$6.44 billion) in capital inflows this year to date – Rp 75 trillion of which was invested in government debt papers (SBNs) while the remainder was invested in the stock exchange.
“The inflow is good. The SBN auctions were always oversubscribed,” said BI deputy governor Mirza Adityaswara on Friday as quoted by kontan.co.id, adding that the inflows through the stock exchange were recorded at Rp 3.8 trillion this month alone, while those through SBNs had reached Rp 1.2 trillion.
Mirza explained this was different from the capital inflows that occurred last year, which were mostly invested in the stock exchange.
However, the central bank also recorded that last year’s capital outflows were quite high -- Rp 24.9 trillion.
Mirza said the high capital inflows reflected investor confidence in Indonesian macroeconomic conditions because the government had managed to control inflation. Meanwhile, the current account deficit was also narrowing, he added. (bbn)