SRBI Draws Rp105 Trillion in Foreign Funds as BI Rate Hike Takes Effect
Bank Indonesia’s (BI) efforts to attract foreign investors to place capital in Indonesia have yielded results. A senior deputy governor at BI revealed that foreign capital inflows have begun flooding Indonesian financial instruments through Bank Indonesia Rupiah Securities (SRBI) and Government Securities (SBN). “As of June, we have seen inflows, whether in SBN, which started to see net inflows this month, or in SRBI, the Bank Indonesia Rupiah certificates we issue, where inflows have reached above Rp103 trillion, around Rp103-105 trillion as of June,” Destry said, quoted on Wednesday (23/6/2026).
Global investors are currently opting for safer instruments like the US dollar amid expectations of a global economic slowdown triggered by the war in the Middle East. This ‘flight to quality’ phenomenon has caused capital outflows from emerging market countries, including Indonesia. “We are facing a situation where this flight to quality towards the US dollar will occur, and capital outflow will also happen, and we have already experienced it,” Destry stated.
The war between the US and Israel with Iran has led to the closure of the Strait of Hormuz, a vital global oil distribution route, as a consequence of the Middle East conflict. This caused crude oil prices to surge past US$100 per barrel, with global inflation expected to rise. The knock-on effects include high global interest rates, elevated yields on their bond instruments, and high inflationary pressures. Consequently, investors are shifting to instruments they perceive as safe, such as holding cash in developed countries like the United States in dollar form. This has strengthened the US dollar, reflected in the DXY index, which measures the dollar against other major currencies, continuing to rise and recently surpassing the 100 level. The result has been a weakening of currencies worldwide, including the Indonesian rupiah.
BI has responded by offering attractive yields and providing incentives to investors willing to enter Indonesia, particularly regarding portfolio investment. “The policy we implemented by raising the interest rate is indeed aimed at maintaining the stability of the rupiah, in this case, the rupiah exchange rate,” Destry explained. The central bank hopes that the increased interest rate will enhance the appeal of rupiah instruments for foreign investors. This is because, in the current situation, foreign investors perceive that the risk premium will increase. “Therefore, if they want to invest in the country, they will certainly demand better earnings, better returns. We reflect this in the increased interest rate, so we hope that inflows will come in.” According to BI data as of 17 June 2026, the SRBI interest rate for a 6-month tenor was 7.12%-8.00%, for a 9-month tenor 7.33%-8.10%, and for a 12-month tenor 7.39%-8.25%.