Capital outflow reaches US$600 million through late 3rd quarter: BI
Pressures from foreign capital flows, particularly in the form of portfolio investment, persist amid the increasing uncertainty about the global financial market
Jakarta (ANTARA) – Bank Indonesia (BI) recorded a net capital outflow of US$600 million, in the form of portfolio investment in the Indonesian financial market, in the third quarter ended on September 20, 2022.
“Pressures from foreign capital flows, particularly in the form of portfolio investment, persists amid the increasing uncertainty about the global financial market,” BI Governor Perry Warjiyo said during a press conference following the monthly meeting of Bank Indonesia’s board of governors here on Thursday.
The capital outflow caused the rupiah to depreciate, though the stability of the currency’s exchange rate remained under control, he said.
He said the rupiah fell 1.03 percent point-to-point (ptp) on September 21, compared to late August.
The rupiah’s exchange rate remained under control due to the domestic supply of foreign currencies and positive perception of domestic economic prospect and BI stability measures.
Overall, the rupiah depreciated 4.97 percent year-to-date (ydt) until September 21, 2022, compared to late 2021.
The rupiah’s depreciation is relatively better than those of other developing nations, such as India (7.05 percent), Malaysia (8.51 percent) and Thailand (10.07 percent).
“Looking ahead, BI will continue strengthening the rupiah exchange rate stability policy, in accordance with its fundamental to support efforts to control inflation and maintain macroeconomic stability,” he said.