Indonesia sees US$3.3bil foreign inflows as Bank Indonesia steps up rupiah defence


FILE PHOTO: An employee counts Indonesian rupiah banknotes in Jakarta. — AFP

JAKARTA: Indonesia recorded US$3.3 billion (US$1 = RM3.91) in net foreign portfolio inflows from January to April, driven by inflows into Bank Indonesia Rupiah Securities (SRBI) as the central bank intensified efforts to stabilise the rupiah amid global market volatility.

Bank Indonesia (BI) Governor Perry Warjiyo said the inflows followed net outflows of US$1.7 billion in the first quarter of 2026.

"Year-to-date, inflows into SRBI reached 78.1 trillion rupiah (1 million rupiah = RM225.50), while equity outflows totalled 38.6 trillion rupiah. Although government bonds recorded inflows in recent weeks, year-to-date outflows still stand at 11.7 trillion rupiah,” he said, according to Antara News Agency.

Perry said BI is implementing a strategy to strengthen the SRBI interest rate structure to attract foreign inflows and support rupiah stabilisation.

He said the central bank was going all out to maintain the rupiah exchange rate through various policies, including intervention in the offshore non-deliverable forward (NDF) market and spot and domestic non-deliverable forward (DNDF) transactions.

"The interventions are not limited to the domestic market, not only through spot and DNDF transactions, but are carried out around the world, around the clock.

"We intervene in the offshore NDF market. We intervene in Hong Kong, Singapore, London, and New York. This is not business as usual; we are all out,” he said.

He said the central bank has also relaxed restrictions on offshore rupiah-related NDF transactions for certain dealers and banks.

Perry said foreign exchange reserves remained more than sufficient to support rupiah stabilisation efforts, standing at US$148.2 billion at the end of March 2026.

"Please remember that foreign exchange reserves were accumulated during times of strong inflows. That is why we use them during periods of outflows. The reserves are substantial,” he said. - Bernama

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Indonesia , foreign flow , NDF , rupiah , Bank Indonesia , economy

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