JAKARTA, July 15 (Xinhua) -- Bank Indonesia said its cumulative 100-basis-point increase in the benchmark interest rate in June had attracted around 105 trillion rupiah (about 5.8 billion U.S. dollars) in foreign inflows into government bonds and Bank Indonesia Rupiah Securities between June and early July 2026.
"Amid heightened uncertainty, the policy response needed to be appropriate and temporary. That is why we raised the benchmark interest rate by 100 basis points in May and June," Bank Indonesia Senior Deputy Governor Destry Damayanti said Wednesday.
Destry said the rate increases were intended to address capital outflows and global uncertainty, with Bank Indonesia Rupiah Securities serving as the fastest instrument to restore foreign investor interest.
Government bonds recorded net foreign inflows of 17.7 trillion rupiah after posting outflows in the first quarter of 2026, while cumulative foreign inflows into Bank Indonesia Rupiah Securities reached 174 trillion rupiah, she said.
In addition to maintaining exchange rate stability, the central bank has continued to support economic growth through its macroprudential liquidity policy, which had provided 479 trillion rupiah in liquidity incentives to banks as of June 2026. ■