BI records foreign capital inflow of Rp918.4 trillion through SRBI

Governor of Bank Indonesia (BI) Perry Warjiyo. (Photo: Doc. ANTARA)

JAKARTA - Bank Indonesia (BI) recorded that until September 17, 2024, foreign capital flows that entered through the Rupiah Bank Indonesia Securities (SRBI) instrument reached IDR 918.42 trillion.

Governor of Bank Indonesia (BI) Perry Warjiyo said that the issuance of SRBI has supported efforts to increase the flow of foreign portfolios into the country and strengthen the rupiah exchange rate.

"The non-resident ownership in SRBI reached Rp246.08 trillion or 26.79 percent of the total outstanding," he said at a press conference on the results of the RDG BI, Wednesday, September 18.

Meanwhile, the implementation of Primary Dealer (PD) since May 2024 has also further increased SRBI transactions in the secondary market and repurchase agreement (repo) between market actors, thereby strengthening the effectiveness of monetary instruments in stabilizing the Rupiah exchange rate and controlling inflation.

In addition to SRBI, Perry said that BI also optimized the pro-market monetary instrument, namely also at the Bank Indonesia Valas Securities (SVBI) and the Bank Indonesia Sukuk Valas (SUVBI), which continues to be carried out in order to strengthen the stability of the Rupiah exchange rate and achieve inflation targets.

"This policy is also intended to accelerate efforts to deepen the foreign exchange market and market as well as encourage foreign capital inflows into the country," he explained.

As for September 17, 2024, the position of SRBI, SVBI, and SUVBI instruments was recorded at Rp918.42 trillion, US$2.95 billion, and US$280 million, respectively.

"In the future, Bank Indonesia will continue to optimize various innovations in pro-market instruments, both in terms of volume and supply aspects, and supported by strong domestic economic fundamental conditions, to encourage the continued flow of foreign portfolio entry to the domestic financial market," he concluded.