Bank Indonesia Optimistic as Rupiah Strengthens Amid Foreign Capital Inflows

Author: Luthfie Febrianto
September 20, 2024

Ilustrasi uang rupiah. Photo : Pinterest

SEAToday.com, Jakarta - Bank Indonesia (BI) reported a continuous strengthening of the Rupiah due to rising foreign capital inflows. Perry Warjiyo, the Governor of BI, expressed optimism about the currency's outlook during a press conference in Jakarta. "The rupiah strengthened, supported by BI's consistent monetary policy mix and increased foreign capital inflows," said Perry, cited by AntaraNews.

As of September 17, 2024, the rupiah appreciated to Rp15,330 per U.S. dollar, reflecting a 0.78 percent gain from the end of August. This appreciation outperformed regional currencies, such as the Korean won and Indian rupee, which saw gains of 0.32 percent and 0.13 percent, respectively.

Compared to the end of December 2023, the rupiah also appreciated by 0.40 percent. In contrast, the Indian rupee and Korean won both depreciated by 0.66 percent and 3.41 percent during the same period. BI's commitment to maintaining economic stability played a key role in this positive development.

Looking ahead, BI remains confident in the rupiah's strength. The central bank is focused on optimizing all monetary instruments, including the pro-market monetary operation strategy and various securities. "Moving forward, all monetary instruments will continue to be optimized," Perry Warjiyo added.

The inflows into Indonesia's financial markets also continued, with substantial investments in government bonds, equities, and Bank Indonesia securities recorded until September 2024. This further solidified the rupiah’s position in the region.

Writer: Fariz Ahmad Luthfi