​No.23/ 137 /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 31^st May – 4^th June 2021

End of Thursday, 3^rd June 2021

1. The Rupiah closed at a (bid) level of Rp14,280 per US dollar.
2. Benchmark 10-year SBN yield decreased to a level of 6.40%.
3. DXY[1] strengthened to a level of 90.51.
4. 10-year US Treasury (UST) Note[2] yield increased to a level of 1.625%.

Friday Morning, 4^th June 2021

1. The Rupiah opened at a (bid) level of Rp14,290 per US dollar.
2. Benchmark 10-year SBN yield increased to 6.41%.

Foreign Capital Flows (First Week of June 2021)

1. Indonesia 5-year credit default swap (CDS) premium decreased to 74.71bps on 3^rd June 2021 compared with 75.78 bps on 28^th May 2021.
2. Based on transaction data from 31^st May – 3^rd June 2021, non-resident investors booked a net buy totalling Rp14.68 trillion in the domestic financial markets, with a net buy in the SBN market of Rp12.27 trillion and a net buy recorded in the stock market of Rp2.41 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net sell totalling Rp2.43 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 June 2021, monthly price developments in June 2021 remain under control and deflation is predicted at 0.09% (mtm). Therefore, inflation in June 2021 for the calendar year is estimated at 0.81% (ytd) and 1.40% (yoy) annually.
2. The main deflation contributors in the reporting period were purebred chicken meat and red chilies (-0.08% mtm), intercity transport fares (-0.06% mtm), bird's eye chilies (-0.04% mtm), shallots (-0.02% mtm), tomatoes, coconuts and airfares (-0.01% mtm). In contrast, gold jewellery (0.04% mtm), purebred chicken eggs (0.03% mtm), cooking oil, rice with a side dish and filtered clove cigarettes (0.01% mtm) experienced inflationary 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, 4^th June 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.