Jakarta (Indonesia Window) – Indonesia’s central bank Bank Indonesia (BI) has noted that foreign capital inflows into the Indonesian financial market amounted to 3.49 trillion rupiahs (some 241.6 million U.S. dollars) during the period 16-19 August, 2021.

Chief Executive Director of BI’s Communications Department Erwin Haryono here, Friday, pointed out that the foreign capital inflows consisted of investments into state securities (SBN) amounting to 1.75 trillion rupiahs (some 121.2 million dollars) and shares worth 1.74 trillion rupiahs (some 120.4 million dollars).

Meanwhile, Indonesia’s foreign capital inflows from the beginning of the year until August 19, 2021 reached 14.56 trillion rupiahs (about 1.008 billion dollars).

The movement of foreign capitals caused the risk premium for investment, namely the five-year tenor of Indonesia's Credit Default Swaps (CDS) to fall to 72.64 basis points (bps) from 73.50 bps.

Meanwhile, the yield on 10-year state securities rose to 6.32 percent. As a comparison to see the difference in interest rates with developed countries, the yield on U.S. 10-year tenor or 10-year US Treasury has dropped to 1.24 percent.

Erwin said BI will continue to strengthen coordination with the government and relevant authorities to closely monitor the dynamics of the spread of COVID-19 and its impacts on the Indonesian economy from time to time.

The central bank will also strengthen the coordination on further policies that need to be taken to maintain macroeconomic and financial system stability, as well as to support Indonesia's economic growth to remain sound and resilient.

Reporting by Indonesia Window