Bank Indonesia\u2019s (BI) efforts to attract foreign investors to place\ncapital in Indonesia have yielded results. A senior deputy governor at\nBI revealed that foreign capital inflows have begun flooding Indonesian\nfinancial instruments through Bank Indonesia Rupiah Securities (SRBI)\nand Government Securities (SBN). \u201cAs of June, we have seen inflows,\nwhether in SBN, which started to see net inflows this month, or in SRBI,\nthe Bank Indonesia Rupiah certificates we issue, where inflows have\nreached above Rp103 trillion, around Rp103-105 trillion as of June,\u201d\nDestry said, quoted on Wednesday (23\/6\/2026).<\/p>\n
Global investors are currently opting for safer instruments like the\nUS dollar amid expectations of a global economic slowdown triggered by\nthe war in the Middle East. This \u2018flight to quality\u2019 phenomenon has\ncaused capital outflows from emerging market countries, including\nIndonesia. \u201cWe are facing a situation where this flight to quality\ntowards the US dollar will occur, and capital outflow will also happen,\nand we have already experienced it,\u201d Destry stated.<\/p>\n
The war between the US and Israel with Iran has led to the closure of\nthe Strait of Hormuz, a vital global oil distribution route, as a\nconsequence of the Middle East conflict. This caused crude oil prices to\nsurge past US$100 per barrel, with global inflation expected to rise.\nThe knock-on effects include high global interest rates, elevated yields\non their bond instruments, and high inflationary pressures.\nConsequently, investors are shifting to instruments they perceive as\nsafe, such as holding cash in developed countries like the United States\nin dollar form. This has strengthened the US dollar, reflected in the\nDXY index, which measures the dollar against other major currencies,\ncontinuing to rise and recently surpassing the 100 level. The result has\nbeen a weakening of currencies worldwide, including the Indonesian\nrupiah.<\/p>\n
BI has responded by offering attractive yields and providing\nincentives to investors willing to enter Indonesia, particularly\nregarding portfolio investment. \u201cThe policy we implemented by raising\nthe interest rate is indeed aimed at maintaining the stability of the\nrupiah, in this case, the rupiah exchange rate,\u201d Destry explained. The\ncentral bank hopes that the increased interest rate will enhance the\nappeal of rupiah instruments for foreign investors. This is because, in\nthe current situation, foreign investors perceive that the risk premium\nwill increase. \u201cTherefore, if they want to invest in the country, they\nwill certainly demand better earnings, better returns. We reflect this\nin the increased interest rate, so we hope that inflows will come in.\u201d\nAccording to BI data as of 17 June 2026, the SRBI interest rate for a\n6-month tenor was 7.12%-8.00%, for a 9-month tenor 7.33%-8.10%, and for\na 12-month tenor 7.39%-8.25%.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/srbi-draws-rp105-trillion-in-foreign-funds-as-bi-rate-hike-takes-effect-1782280297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }