BI Pursues Inflow, Foreign Funds in SRBI Hit Rp55.3 Trillion

Senior Deputy Governor of Bank Indonesia (BI) Destry Damayanti stated that raising the benchmark interest rate is one of the measures taken by the central bank to maintain rupiah exchange rate stability amid high demand for US dollars in the domestic market. Destry said stability is BI’s primary focus in formulating monetary policy. Consequently, at the June 2026 Board of Governors Meeting, BI raised the benchmark rate by another 25 basis points. “What BI has done is what we did today, raising the interest rate by 25 bps because stability is our focus,” Destry said during the RDG press conference on Thursday (18/6/2026). She explained that over the past month, BI has raised the benchmark rate by a cumulative 100 bps. This policy has also driven up yields on various domestic financial instruments, making them more attractive to foreign investors. Destry noted that the yield on 12-month Bank Indonesia Rupiah Securities (SRBI) has now reached 7.5%. Meanwhile, the yield on Government Securities (SBN) is also moving above 7%, specifically in the range of 7% to 7.02%. According to her, the increase in yields aims to attract foreign capital inflows into Indonesia’s financial market. The inflow of foreign funds is considered crucial to bolstering the supply of foreign exchange and maintaining rupiah stability. “The impact is that our main goal is inflow, because this is our collective need for dollars,” Destry remarked. BI recorded that as of 17 June 2026, foreign investors had booked a net inflow of Rp4.9 trillion in the SBN market. Meanwhile, the flow of foreign funds into SRBI instruments reached Rp55.3 trillion. Destry said the strong foreign capital inflows have helped increase the supply of foreign exchange in the domestic market and have been one of the factors supporting the recent strengthening of the rupiah. “This means that with substantial foreign inflows, it supplies foreign exchange to our market. That at least explains why our rupiah has strengthened,” she said. Going forward, BI affirmed it will continue to maintain various policies that support the entry of foreign capital into the domestic financial market. This measure is taken to safeguard rupiah exchange rate stability while strengthening Indonesia’s external sector resilience amid global financial market dynamics.