BI Says Strengthening Monetary Policy Triggers Return of Foreign Capital

Bank Indonesia (BI) stated that investor responses to the strengthening of the monetary policy mix showed a positive trend.

The Head of the BI Communication Department, Ramdan Denny Prakoso, explained that the increase in the BI-Rate to 5.50 percent, followed by an increase in the yield of Bank Indonesia Rupiah Securities (SRBI) and State Securities (SBN), managed to increase foreign investors' interest in domestic financial instruments.

"This is reflected in the increasing inflow of foreign capital into SRBI instruments after the SRBI auction on June 10, 2026," he said in a statement, Friday, June 12.

In addition, he added that foreign capital flows have also begun to flow back into the SBN market, especially in short- to medium-term debt securities.

Ramdan added that along with this development, the rupiah exchange rate against the US dollar continued to strengthen and moved back below the Rp18,000 per US dollar level.

He added that Bank Indonesia will continue to monitor the development of global and domestic financial markets and maintain the attractiveness of domestic financial instruments to support the inflow of foreign capital.

"Bank Indonesia will also continue to optimize steps to stabilize the rupiah exchange rate through NDF interventions in the offshore market as well as spot and DNDF transactions in the domestic market in a consistent and measurable manner," he concluded.