Bank Indonesia: Capital Outflow Rp167.9tn from January



Laila Afifa

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  • TEMPO.CO, JakartaBank Indonesia (BI) governor Perry Warjiyo said that the capital outflow recorded since Covid-19 hits Indonesia has reached Rp167.9 trillion.

    "From January 20 to March 30 the amount of capital outflow reached Rp167.9 trillion," he said during a virtual press conference via YouTube on Wednesday, April 1. 

    He said that capital outflows are mostly in the form of state securities (SBN) worth Rp153.4 trillion and shares worth Rp13.4 trillion. He said that capital outflows are not happening just in Indonesia, but across the globe. 

    Massive capital outflows have resulted in global panic, pressuring the rupiah exchange rate against the US dollar. To overcome the panic of foreign investors, BI implemented a triple intervention: stabilizing the exchange rate in the spot market, domestic non-delivery forwards (DNDF), and absorbing SBN released by investors in the secondary market.

    "We have bought SBN from secondary markets for Rp166 trillion. BI continues to coordinate with the government, the OJK, and LPS. Thank goodness, the rupiah is stable and the stock market has been in the green zone since a week ago," Perry said. 

    Perry stressed the central bank has injected large amounts of liquidity, which was focused on stabilizing the financial and banking markets.

    This includes buying SBNs on the secondary market, reducing the minimum statutory reserve requirement (GWM) from 8 percent to 4 percent—resulting in an additional US$3.2 billion, reducing the rupiah minimum statutory reserves (GWM) by 50 bps—resulting in Rp22 trillion.

    "The total injection of liquidity is almost Rp300 trillion," he said.