The Flow Of Foreign Funds Flows Burst To RI If The US Fails To Pay Debt

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) has spoken about the potential for default on its debts in June.

According to BI Governor Perry Warjiyo, the threat faced by superpowers arises due to the political process that occurs in the country.

Perry believes that the US still has the ability to fulfill its debt obligations because it is listed as the country with the largest economy in the world.

History says that there will be a compromise between the government and its DPR America. But is this debt trafficking compromise with a decrease in the budget tax expenditure (tax expenditure)? This is what we are still studying and seeing," he said when answering reporters' questions in Jakarta, Thursday, May 25.

Perry explained that the uncertainty that followed in the US actually brought its own blessings to Indonesia and other developing countries.

The reason is, investors are starting to park their funds on emerging countries avoiding the risks that occur in America.

"Amid the uncertainty of the global financial market, foreign capital inflows to developing countries continue along with the better conditions and economic prospects," he stressed.

Perry mengungkapkan, aliran masuk modal asing di pasar keuangan domestik berlanjut pada triwulan II 2023.

This indication is reflected in portfolio investment, which until May 23, 2023 recorded net inflows of US$1.0 billion.

"The balance of capital and financial transactions is estimated to record a surplus supported by foreign capital inflows in the form of Foreign Investment (PMA) and portfolio investments," he said.

For information, US Treasury Secretary Janet Yellen issued a statement that her country has the potential to default on debt of 31.4 trillion US dollars.

He conveyed the information to the chairman of parliament earlier this month.

According to Yellen, if the congress does not approve the proposed strategic fiscal policy offered by the government, there is a potential default that will actually occur on June 1