BI Reveals Foreign Capital Flow Enters Deras From SRBI, SVBI And SUVBI

Illustration. (Photo: Doc. Antara)

JAKARTA - Pro-market monetary instruments issued by Bank Indonesia such as Bank Indonesia's Rupiah Securities (SRBI), Bank Indonesia Foreign Exchange Securities (SVBI) and Bank Indonesia Foreign Vaccine Sukuk (SUVBI) are widely eyeed by investors. In fact, the incoming capital flows increased.

Governor of Bank Indonesia (BI) Perry Warjiyo said to strengthen the stability of the Rupiah exchange rate and achieve inflation targets, Bank Indonesia continues to optimize various pro-market monetary instruments, namely SRBI, SVBI, and SUVBI.

"This policy is also intended to accelerate efforts to deepen the money market and support foreign capital inflows into the country," he said at a press conference, Wednesday, July 17.

Perry said that until July 15, 2024, the position of SRBI, SVBI, and SUVBI instruments was recorded at IDR 775.45 trillion, US $ 1.82 billion, and US $ 267 million, respectively.

Compared to the previous month, the position of SRBI, SVBI, and SUVBI instruments was recorded at IDR 666.53 trillion, US $ 2.3 billion, and US $ 395 million, respectively.

"The issuance of SRBI has supported foreign portfolio entry into the country, as reflected in non-resident ownership which reached Rp220.35 trillion or 28.42 percent of the total outstanding," he said.

Meanwhile, last month, the issuance of SRBI had attracted foreign inflows into the country, only reaching Rp179.86 trillion or equivalent to 26.98 percent of the total outstanding.

Perry conveyed that the implementation of Primary Dealer (PD) since May 2024 has also strengthened the effectiveness of SRBI as a monetary instrument in supporting the stability of the Rupiah exchange rate and inflation control.

In the future, Perry said that Bank Indonesia will continue to optimize various innovations in pro-market instruments, both in terms of volume and attractive returns, and supported by strong domestic economic fundamental conditions, to encourage the continued flow of foreign portfolios to the domestic financial market.