BI's Strategy Succeeds! Government Bonds and SRBI Flooded with Rp 105 Trillion in Foreign Funds

Jakarta, CNBC Indonesia – Bank Indonesia (BI) has acknowledged that heightened global uncertainty triggered foreign capital outflows in the first quarter of 2026, with strong outflows occurring in the equity market.

This was disclosed by Bank Indonesia Senior Deputy Governor Destry Damayanti at the Investment Forum 2026, hosted by CNBC Indonesia at the Main Hall of the Indonesia Stock Exchange (BEI) on Wednesday (15 July 2026).

“We observed that perceptions caused the risk premium in Indonesia to rise,” said Destry.

As a result, BI raised interest rates in order to reprice Indonesia’s money market portfolio, including State Securities (SBN) and Rupiah Securities of Bank Indonesia (SRBI).

From May to June 2026, BI raised interest rates by 100 basis points (bps). Following this policy, SBN and SRBI underwent repricing. Data from BI showed that inflows into SBN from June to early July 2026 reached Rp 33 trillion, and into SRBI Rp 72 trillion, bringing the total to Rp 105 trillion over the period.

“Overall, SBN recorded an inflow of Rp 17.7 trillion because the first quarter was negative, SRBI Rp 174 trillion, and in equities there was repricing resulting in an inflow of Rp 132 trillion,” Destry explained.

Drawing on that experience, Destry emphasised that when outflows occur, BI needs to anchor market perceptions. Such efforts must be frontloaded in order to anticipate future conditions, including inflation expectations.

“This underpinned our decision as well, because our asset portfolio needed repricing (through the BI Rate),” Destry clarified.