JAKARTA, July 31 (Xinhua) -- Foreign capital inflows into Indonesia strengthened following the central bank's cumulative 100-basis-point interest rate increase since late May, helping bolster the country's financial resilience amid global uncertainty, Bank Indonesia said Friday.
Acting Bank Indonesia Governor Destry Damayanti said foreign investors had channeled 195 trillion rupiah (about 10.7 billion U.S. dollars) into government bonds and Bank Indonesia Rupiah Securities, known as SRBI, as of this week.
"The 100-basis-point rate increase since the end of May has led to a repricing of domestic assets, including government bonds and SRBI, generating inflows of 195 trillion rupiah, or more than 10 billion dollars. This is a relatively large amount," Destry said during a virtual editors' briefing from Parapat, North Sumatra province.
She said the inflows would help strengthen Indonesia's foreign exchange reserves and improve market liquidity, supporting the central bank's efforts to maintain macroeconomic and financial stability amid persistent global uncertainty.
Bank Indonesia has kept its benchmark interest rate unchanged at 5.75 percent. Destry said the decision reflected continued external risks that could affect domestic financial markets, particularly asset prices. ■
