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Rp81 trillion worth of foreign capital flow into Indonesia: BI

Jakarta (ANTARA News) – Bank Indonesia has said Rp81 trillion worth of foreign capital had flowed into Indonesian financial market until the second week of this year or a 35 percent increase from Rp60 trillion in the same period last year.

Agus Martowardojo, the central bank governor, said the “strong inflows” of foreign capital indicated strong confidence of foreign investors in the countrys economic stability and fundamental.

“Whereas, when the election of the US new president, the global market was hit by big turbulence and many currencies lost their value,” Agus said here on Thursday.

The strong inflows of foreign capital contributed to the stability of rupiah facing foreign currencies, he added.

He said the pressure of global economic slowdown has not receded significantly until early April this year, but the rupiah value has increased one percent year to date.

“In 2013, when the economic condition had not improved, the rupiah value sank as deep as 21 percent,” he recalled.

According to benchmark exchange rate of Jakarta Interbank Spot Dollar Rate (JISDOR), the rupiah value gained to the level of Rp12,600-Rp12,900 per US$ dollar in the second week of April this year after relatively stable at around Rp13,300 per dollar in March.

The countrys economic fundamental improved as indicated by inflation kept under control until March , 2017 at 3.61 per cent (year on year), and foreign exchange reserves rising to US$121 billion.

“However, we have to remain on guard against vulnerable global economy that could negatively affect the domestic economic indicators,” he said.(*)