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

Jakarta - Bank Indonesia (BI) has acknowledged that high global uncertainty triggered capital outflows in the first quarter of 2026, with strong outflows occurring in the stock market. This was revealed by BI Senior Deputy Governor Destry Damayanti at the Investment Forum 2026 held by CNBC Indonesia at the Indonesia Stock Exchange (BEI) Main Hall on Wednesday (15/7/2026). “We saw that perception caused an increase in Indonesia’s risk premium,” Destry said. As a result, BI raised interest rates to reprice the country’s money market portfolio, including Government Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI). Between May and June 2026, BI raised the benchmark interest rate by 100 basis points. Following this policy, SBN and SRBI experienced a repricing. BI data shows that inflows into SBN from June to early July 2026 reached Rp 33 trillion, while SRBI saw inflows of Rp 72 trillion, bringing the total to Rp 105 trillion for the period. “Overall, SBN recorded an inflow of Rp 17.7 trillion because the first quarter was negative, SRBI saw Rp 174 trillion, and the stock market experienced a repricing resulting in an inflow of Rp 132 trillion,” Destry explained. Based on recent experience, Destry stressed that when outflows occur, BI must make efforts to anchor market perception. This action must be frontloading to anticipate future conditions, including inflation expectations. “This also underlies our decision because there must be a repricing of our asset portfolio through the BI Rate,” Destry concluded.