BI Governor Perry Warjiyo Leaked Reasons For The Rupiah To Strengthen This Year

Illustration of rupiah currency. (Photo: Doc. Antara)

JAKARTA - The Bank Indonesia monetary authority believes that foreign portfolio investment will flow rapidly this year. Governor of Bank Indonesia (BI) Perry Warjiyo said that his party projected that foreign funds would enter twice as large as the 2020 book.

"The investment flow in 2021 is estimated to reach 19.6 billion US dollars," he said during a virtual work meeting with the DPR, Tuesday, February 9.

Meanwhile, the realization during 2020 was recorded at 9.45 billion US dollars.

"This prediction is also the second largest in the world after China," he said.

Perry added, if this scenario is realized, it will almost certainly be able to support the strengthening performance of the rupiah this year.

"This is inseparable from the support of the Job Creation Law which provides securities for portfolio investment," he said.

For information, the rupiah in the second week of February experienced a strengthening trend as a result of worsening labor data in the United States (US).

In opening trading today Tuesday, February 9, the rupiah was traded at the level of Rp.13,995 per US dollar. Then it weakened to IDR 14,007 per US dollar. At the close, the rupiah strengthened again to a level of Rp13,990 per US dollar.