ER
FOREIGN portfolio investment into Indonesia recorded net inflows of US$1.8 billion in the third quarter through Aug. 14, acting Bank Indonesia Governor Destry Damayanti said.
Speaking in Jakarta on Wednesday (08/19), 2026, Destry said inflows were supported by government global bond issuance and purchases of government bonds and Bank Indonesia Rupiah Securities, known as SRBI.
Overall, Bank Indonesia said Indonesia’s balance of payments needs further strengthening to bolster external resilience amid continued global market volatility.
Indonesia’s trade balance posted a cumulative surplus of US$3.58 billion from January through June, despite a US$450 million deficit in June, according to Bank Indonesia.
Foreign exchange reserves stood at US$145.3 billion at the end of July, equivalent to 5.5 months of imports, or 5.3 months of imports and government external debt payments.
The reserve level remained well above the international adequacy standard of about three months of imports, Bank Indonesia said.
“Going forward, external resilience is expected to remain strong, supported by policy coordination between the government and Bank Indonesia in facing global volatility,” Destry said.
The rupiah strengthened following Bank Indonesia’s stabilization measures, reaching IDR17,855 per dollar on Aug. 18, up 0.78% from its end-July level.
Destry said the gains reflected efforts to optimize monetary instruments and expand incentives to attract foreign portfolio investment, stabilize the rupiah and deepen money and foreign-exchange markets.
The incentive for hedging sell swaps was raised to 12.5%, while the incentive for hedging sell DNDF transactions was set at 15%. Bank Indonesia also introduced incentives to boost local-currency transactions with partner countries, including a 10% premium on hedging buy swaps and a 10 percent reduction in hedging sell DNDF premiums.
“Bank Indonesia will continue pursuing strategies to maintain rupiah stability,” Destry concluded, adding that the currency is expected to remain stable as stabilization measures are strengthened. [antaranews/foto: jakartaglobe.id]
