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No. 23/215/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 16-20^th August 2021

End of Thursday, 19^th August 2021

1. The rupiah closed at a (bid) level of Rp14,400 per US dollar.
2. Benchmark 10-year SBN yield decreased to a level of 6.31%.
3. DXY¹ strengthened to a level of 93.57.
4. 10-year US Treasury (UST) Note² yield decreased to a level of 1.243%.

Friday Morning, 20^th August 2021

1. The rupiah opened at a (bid) level of Rp14,450 per US dollar.
2. Benchmark 10-year SBN yield increased to a level of 6.32%.

Foreign Capital Flows (Third Week of August 2021)

1. Indonesia 5-year credit default swap (CDS) premium decreased to 72.64bps on 19^th August 2021 compared with 73.50bps on 13^th August 2021.
2. Based on transaction data from 16-19^th August 2021, non-resident investors booked a net buy totalling Rp3.49 trillion in the domestic financial markets, with a net buy in the SBN market of Rp1.75 trillion and a net buy recorded in the stock market of Rp1.74 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net buy totalling Rp14.56 trillion in the domestic financial markets.
    

B.   Inflation Remains Low and Under Control

1. Based on the latest Price Monitoring Survey in the third week of August 2021, monthly price developments in August 2021 remain under control and inflation is predicted at 0.04% (mtm). Therefore, inflation in August 2021 for the calendar year is estimated at 0.85% (ytd) and 1.60% (yoy) annually.
2. The main inflation contributors in the reporting period were cooking oil (0.03% mtm), tomatoes (0.02% mtm), purebred chicken eggs and filtered clove cigarettes (0.01% mtm). In contrast, bird's eye chilies (-0.05% mtm), red chillies (-0.02% mtm), as well as water spinach, spinach, mustard greens, yardlong beans, oranges, gold jewellery and intercity travel (-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, 20^th August 2021

Head of Communication Department

Erwin Haryono

Executive Director

Information about Bank Indonesia

Tel. 021-131, Email: bicara@bi.go.id

¹DXY 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.