VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Bank Indonesia -BI recorded that foreign capital inflow to Indonesia since the beginning of the year until Friday, May 31, 2019 has reached Rp112.98 trillion. The capital inflow is also one of the pillars of fulfilling foreign exchange demand in the domestic market so that this has helped maintain the stability of the rupiah exchange rate in recent times.Governor of BI, Perry Warjiyo pointed out that the foreign capital inflow that went into government bonds or State Securities -SBN reached Rp56 trillion. Meanwhile, around Rp57 trillion went into stock instruments. He stated that this reflected that foreign investors were very confident in Indonesia, while maintaining the stability of the rupiah exchange rate against the US dollar.According to Governor Perry, overall, indicators on the domestic financial market are still maintained. The capital inflow is inseparable from the yield of competitive domestic financial instruments compared to the peers.The yields on 10-year government bonds were recorded at 8.01 percent. This parameter was added with low inflation movement in the range of 3.1 percent (year on year) until May 2019. The inflation rate is considered to increase foreign investor confidence because the prices of goods are maintained amid the momentum of high consumption during Ramadhan and before Lebaran.Governor Perry further said that until the end of May 2019, the condition of the rupiah exchange rate was still under control. At the close of Wednesday, (May 29, 2019), the rupiah was transacted at 14,395 rupiah per US dollar. He also said that Bank Indonesia would continue to carry out measures to stabilize exchange rates according to fundamentals if needed, both through intervention in foreign exchange and the purchase of State  Securities on the secondary market.