Bank Indonesia (BI) Governor Perry Warjiyo expects foreign investment to enter Government Securities (SBN) and increase the supply of dollars so as to stabilise rupiah.

“Therefore, with the auction (SBN), foreign investors then also start entering and it will do the stability of the exchange rate,” Perry said after a meeting in the Ministry of Finance reported Antaranews.com, Tuesday (3/7/2018).

Perry ensures that BI will continue to stabilise rupiah, either through foreign exchange market intervention or the purchase of SBN in the secondary market. He also said that the response of interest rate hikes has been taken to make the Indonesian financial market, especially government bonds, have a yield that remains attractive to foreign investors.

The rupiah exchange rate transacted between banks in Jakarta on Tuesday morning shrank seven points to Rp14,397 from Rp14,390 per US dollar. Rupiah continued to shrink until 10:30 am when its exchange rate depreciated 39 points to 14,429 per US dollar.

Source: Kompas.com