Friday, 28 January 2022 | 15:48 WIB

BI: Capital Inflows Reach IDR13 Trillion after Benchmark Rate Hike

Capital Inflows Reach IDR13 Trillion after Benchmark Rate Hike.

JAKARTA, NNC - Bank Indonesia (BI) stated that the policy of raising the benchmark rate by up to 50 basis points brings a positive influence on the flow of foreign capitals or capital inflows. Foreign capitals entering the forex market through Government Securities (SBN) instruments reached IDR13 trillion.

"[Capital] inflows have started to enter, especially through SBN. It has increased the supply in the forex market, until now it has entered about IDR13 trillion," said BI Governor Perry Warjiyo in Jakarta, Tuesday (6/5/2018).

Perry asserted the positive capital inflows are the result of the implementation of various policies by BI. "Monetary policy is the main policy of our policy mix," he said.

Meanwhile, the preparation of the policy mix by BI is strived to support the targets of 2019 macroeconomic assumptions. "The most we seek in the preparation of the policy mix is to maintain inflation stability and the rupiah exchange rate," he explained.

In addition to monetary policy, BI also has four policy instruments that will support financial system stability and economic growth. "First macroprudential policy, especially LTV [loan-to-value] relaxation to encourage the growth of the property sector," he said.

He added that efforts to boost economic growth will also be conducted by BI through a mix of policies related to the deepening of financial markets to encourage infrastructure financing, digital based payment systems and the development of sharia economy.