​No. 23/121/DKom

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 3^rd-7^th May 2021

End of Thursday, 6^th May 2021

1. The rupiah closed at a (bid) level of Rp14,315 per US dollar.
2. Benchmark 10-year SBN yield decreased to a level of 6.41%.
3. DXY[1] weakened to a level of 90.95.
4. 10-year US Treasury (UST) Note[2] yield decreased to a level of 1.570%.

Friday Morning, 7^th May 2021

1. The rupiah opened at a (bid) level of Rp14,250 per US dollar.
2. Benchmark 10-year SBN yield decreased to 6.38%.

Foreign Capital Flows (First Week of May 2021)

1. Indonesia 5-year credit default swap (CDS) premium was relatively stable at 76.17bps on 6^th May 2021 compared with 76.43bps on 30^th April 2021.
2. Based on transaction data from 3^rd-6^th May 2021, non-resident investors booked a net buy totalling Rp1.97 trillion in the domestic financial markets, with a net buy in the SBN market of Rp1.09 trillion and a net buy recorded in the stock market of Rp0.88 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net sell totalling Rp0.77 trillion in the domestic financial markets.
   
   

B.    Inflation Remains Low and Under Control

1. Based on the latest Price Monitoring Survey in the first week of May 2021, monthly inflation in May 2021 is predicted at 0.15% (mtm). Therefore, inflation in May 2021 for the calendar year is estimated at 0.73% (ytd) and 1.51% (yoy) annually.
   
   
2. The main inflation contributors in the reporting period were intercity transport fares (0.11% mtm), purebred chicken meat (0.03% mtm), oranges and beef (0.02% mtm) as well as cooking oil, gold jewellery and airfares (0.01% mtm). In contrast, red chilies (-0.06% mtm), bird's eye chilies (-0.05% mtm) as well as shallots and purebred chicken eggs (-0.01% mtm) experienced deflationary pressures.

Bank Indonesia will continue to strengthen coordination with the Government and other relevant authorities in order 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.

Executive Director

Information about Bank Indonesia
Tel. 021-131, Email: bicara@bi.go.id

[1] 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.

[2] United States Treasury Notes are government debt instruments issued by the United States Department of the Treasury with tenors of 1-10 years.