BI Reveals Foreign Capital Flow Enters SRBI Instrument Reaches IDR 892.90 Trillion

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

JAKARTA - Bank Indonesia (BI) said that until February 17, 2025, there was an inflow of foreign capital into the country on the Rupiah Bank Indonesia Securities (SRBI), Bank Indonesia Valas Securities (SVBI), and Bank Indonesia Valas Sukuk (SUVBI) respectively. Rp892.90 trillion, US$3.03 billion, and US$587 million.

BI Governor Perry Warjiyo said the issuance of SRBI had supported foreign portfolio entry into the country and the stability of the Rupiah exchange rate.

"The non-resident ownership in SRBI as of February 17, 2025 reached Rp225.35 trillion or 25.24 percent of the total outstanding," he said at a press conference, Wednesday, Wednesday, Wednesday 19.

Perry conveyed that the implementation of major dealers (primary dealers) 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.

According to him, strengthening the pro-market monetary operations strategy to strengthen the effectiveness of monetary policy transmission, accelerate the deepening of foreign currency markets and exchange markets (foreign currency), and encourage foreign capital inflows, by optimizing SRBI, SVBI, and SUVBI as pro-market monetary instruments.

In addition, Perry conveyed that to maintain the interest rate structure of monetary instruments to continue to attract foreign portfolio inflows to domestic financial assets, strengthen the term-repo transaction strategy and swap values and strengthen the role of Primary Dealer (PD) to increase SRBI transactions in the secondary market and repurchase agreement (repo) transactions between market actors.

Perry said that the transmission of monetary policy went well to the money market and financial markets.

In line with the decline in BI-Rate in January 2025, the money market interest rate (IndONIA) moved down, which was 5.70 percent on February 18, 2025, from 6.02 percent in early January 2025.

The SRBI interest rate for tenors 6, 9, and 12 months dated February 14, 2025 also decreased to 6.38 percent; 6.42 percent; and 6.46 percent. However, it is still recorded interesting to support foreign capital inflows from 7.16 percent, 7.20 percent and 7.27 percent respectively. percent in early January 2025.