Jakarta – The Finance Ministry recorded that the foreign capital invested in the government's debt papers (SBN) broke this year's record on Nov. 28, hitting Rp 899.19 trillion (US$62.95 billion), surpassing the previous record of Rp 880.2 trillion on Jan. 23.
Bank Indonesia (BI) monetary management department head Nanang Hendarsah said on Thursday that global investors had started to show trust in the Indonesian economy following the strengthening of the rupiah against the US dollar.
The Jakarta interbank spot dollar rate (JISDOR) recorded the rupiah's appreciation on Friday when the exchange rate stood at 14,339 per US dollar, compared to Rp 14,408 per US dollar on Thursday and Rp 14,535 on Wednesday.
"The trust of global investors in the Indonesian economy is growing strong because of consistent monetary and fiscal policies as well as [our] prudent response to global and domestic challenges," said Nanang as quoted by kontan.co.id.
Meanwhile, University of Indonesia macroeconomic and financial researcher Febrio Kacaribu said the inflow of foreign portfolios was also encouraged by a correction of the global financial market perception, particularly related to the interest rates in the US in 2019.
Febrio said other factors included Indonesia's strong economic growth, BI's more aggressive measures than other countries' central banks and the decline of the crude oil price.
Maybank Indonesia economist Myrdal Gunarto added that yields from asset investment in Indonesia were in line with the increase of the BI's reference rate. (bbn)