Monitoring economic conditions
in Indonesia, particularly in terms of the COVID-19 impact, Bank Indonesia
regularly publishes rupiah stability indicators, including the exchange rate
and inflation, as follows:
A. Exchange
Rate Developments 15-18th June 2020
End of Thursday, 18th June 2020
1. The
rupiah closed stronger at a level of Rp14,010 per US dollar.
2. Benchmark
10-year SBN yield decreased to 7.13%.
3. DXY
strengthened to a level of 97.42.
4. US10-year
Treasury (UST) Note
yield increased to a level of 0.708%.
Friday Morning, 19th June 2020
1. The
rupiah opened at a level of Rp14,020 per US dollar.
2. Benchmark
10-year SBN yield increased to 7.15%.
Foreign Capital Flows (Third Week of June
2020)
1. Indonesia
5-year credit default swap (CDS)
premium decreased to 124.20bps as of 18th June 2020 from 129.71bps on
12th June 2020.
2. Based
on transaction data from 15-18th June 2020, non-resident investors
booked a net sell totalling Rp1.09 trillion in the domestic financial markets,
with a net sell recorded in the stock market of Rp2.15 trillion and a net buy
in the SBN market of Rp1.06 trillion.
3. Based
on settlement data in 2020 (ytd), non-resident investors have booked a net sell
totalling Rp142.16 trillion in the domestic financial markets.
B. Inflation
Remains Low and Under Control
1. Based
on the latest Price Monitoring Survey as of the third week of June 2020, lower
inflation is predicted in June 2020 at 0.02% (mtm). Therefore, inflation estimate
in June 2020 for the calendar year stands at 0.93% (ytd) or 1.79% (yoy).
2. The
main inflation contributors in the reporting period were purebred chicken meat
at 0.13% (mtm), purebred chicken eggs at 0.04% (mtm) as well as shallots and
tomatoes at 0.01% (mtm) each. Meanwhile,
several commodities experienced deflationary pressures, including garlic at
-0.04% (mtm), red chili at -0.03% (mtm), airfares at -0.03% (mtm), bird’s eye
chili, oranges and gold jewellery at -0.02% (mtm), as well as cooking oil and
granulated sugar at -0.01% (mtm).
Bank Indonesia will continue
to strengthen coordination with the government and other relevant authorities
to carefully monitor COVID-19 transmission dynamics and the economic impact
over time, while taking the coordinated policy measures required to maintain
macroeconomic and financial system stability as well as support solid and
resilient national economic growth.
Head of Communication Department
Onny Widjanarko
Executive Director
DXY or the
US Dollar Index is an index of the value of the United States dollar relative
to a basket of six foreign currencies, namely EUR, JPY, GBP, CAD, SEK
and CHF.
United
States Treasury Notes are government debt instruments issued by the United
States Department of the Treasury with tenors of 1-10 years.4
