Foreign capital inflows touch Rp217 trillion until Oct 2019: BI

This indicates confidence in the prospects for the Indonesian economy, Indonesian policy, and above all, the leadership of the Indonesian government, including the president, ministers, and all of us.

Jakarta (ANTARA) – Foreign investment inflows in the domestic financial market had touched Rp217.14 trillion in the year ending October 31, 2019, thereby indicative of high confidence among investors to manage the national economy, Bank Indonesia (BI) stated.

High foreign investment inflows also mirrored the investors’ confidence in the leadership of the Indonesian government, including ministers in the Indonesia Onward Cabinet for the next five years, BI Governor Perry Warjiyo stated in Jakarta on Friday.

“This indicates confidence in the prospects for the Indonesian economy, the Indonesian policy, and above all, the leadership of the Indonesian government, including the president, ministers, and all of us,” he noted.

Foreign investment inflows comprised Rp165.2 trillion through state bonds, Rp49.9 trillion through the stock market, and Rp2.06 trillion through corporate bonds.

During the period from October 24 to 31, 2019, foreign investment inflows through state securities (SBN) had reached Rp4.45 trillion. However, during the past week, investors also withdrew Rp190 billion capital from the stock market.

Despite the capital outflow from the stock market, he believed the amount of capital inflows in future will surpass that of capital outflows. The higher amount of capital inflows will make the rupiah’s exchange rate relatively stable, he stated.

“The market mechanism develops properly to handle both supply and demand,” he stated.

He further added that the Federal Reserve’s decision to slash the fed funds rate by 25 basis points on Thursday will not have a significant impact on the rupiah movement.

The Fed is expected to slash its benchmark interest rate to the lower level in future, he stated.

“This demonstrates that the Fed will conduct a hawkish cut,” he added.

Source: ANTARA News