Jokowi's New Cabinet Raises Foreign Capital: Bank Indonesia

TEMPO.CO, Jakarta - Bank Indonesia (BI) recorded a total of Rp12.03 trillion in foreign capital had flown into the country during the past week to date following President Jokowi's announcement of the Indonesia Onward Cabinet. 

BI Governor Perry Warjiyo said in Jakarta, Friday, Oct 25, that foreign investors still believed in the fundamental recovery of the domestic economy amid the dynamics of the holders of economic ministerial posts and other strategic posts.

“This indicates that the confidence among foreign investors in Indonesia is strong, including in our economic prospects,” said Perry.

The capital inflow of Rp12.19 trillion was in the form of the governments’ debt papers (SBN), while the capital outflow amounted to Rp0.23 trillion. Thus, the total capital inflow was Rp12.03 trillion. 

Perry claimed the capital outflow was a normal phenomenon in stock transactions, and that it did not reflect investors’ disappointment at the cabinet announcement.

“There is no link between the capital outflow and the cabinet. The global trust in the Indonesian economy is surely strong, especially with the new cabinet,” Perry remarked.

Furthermore, the central bank opined the ministerial and deputy ministerial seats of Indonesia Onward Cabinet were occupied by qualified figures. Perry wished for stronger coordination between BI and the government in order to achieve the target of the country’s development.

BI projected that Indonesia's economic growth in 2019 would be 5.1 percent year-on-year (yoy) and jumped to 5.3 percent yoy in 2020.

ANTARA