Capital inflows reached USD 6.3 billion as the middle of March

CAPITAL INFLOW - JAKARTA. Bank Indonesia (BI) noted that to this day the flow of capital inflows reached USD 6.3 billion. The funds are in the form of foreign investment (PMA) and portfolio investment.

"Only for portfolio investment, which is related to the inflow to SBN and shares, the total to date is Rp. 73 trillion," said Bank Indonesia Governor Perry Warjiyo, Friday (22/3).

Perry further explained that the fund consisted of Rp. 62.5 trillion for SBN and Rp. 11.9 trillion to the stock exchange. "This shows that trust in Indonesia is also good," Perry explained.

According to the BI governor, several factors have encouraged this capital inflow. They are the relatively stable rupiah exchange rate, the right economic conditions, increased economic growth, low inflation, and a declining current account (CAD) deficit.

Perry also said, with a large number of foreign funds entering in the first quarter, BI estimated that Indonesia's balance of payments would experience a surplus. The CAD will decrease, and the surplus capital account will be high.