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No. 23/134/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 24-28^th May 2021

End of Thursday, 27^th May 2021

1. The Rupiah closed at a (bid) level of Rp14,285 per US dollar.
2. Benchmark 10-year SBN yield decreased to a level of 6.42%.
3. DXY¹ stable at a level of 89.97.
4. 10-year US Treasury (UST) Note² yield decreased to a level of 1.60%.

Friday Morning, 28^th May 2021

1. The Rupiah opened at a (bid) level of Rp14,285 per US dollar.
2. Benchmark 10-year SBN yield stable at 6.42%.

Foreign Capital Flows (Fourth Week of May 2021)

1. Indonesia 5-year credit default swap (CDS) premium decreased to 75.81 bps on 27^th May 2021 compared with 77.69 bps on 21^st May 2021.
2. Based on transaction data from 24-27^th May 2021, non-resident investors booked a net buy totalling Rp6.13 trillion in the domestic financial markets, with a net buy in the SBN market of Rp5.45 trillion and a net buy recorded in the stock market of Rp0.69 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net sell totalling Rp12.29 trillion in the domestic financial markets.
   

B.   Inflation Remains Low and Under Control

1. Based on the latest Price Monitoring Survey in the fourth week of May 2021, monthly inflation in May 2021 remains under control and is predicted at 0.28% (mtm). Therefore, inflation in May 2021 for the calendar year is estimated at 0.86% (ytd) and 1.64% (yoy) annually.
2. The main inflation contributors in the reporting period were intercity transport fares (0.09% mtm), purebred chicken meat (0.06% mtm), beef and gold jewellery (0.03% mtm), oranges and cooking oil (0.02% mtm), as well as coconut, water spinach, potatoes, spinach, fresh shrimp, mackerel tuna, mackerel and airfares (0.01% mtm).  In contrast, bird's eye chilies and red chilies (-0.05% mtm), as well as 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.

Jakarta, 28^th May 2021
Head of Communication Department
Erwin Haryono
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.