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No. 23/32/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 1^st-5^th February 2021

End of Thursday, 4^th February 2021

1. The rupiah opened at a (bid) level of Rp14,010 per US dollar.
2. Benchmark 10-year SBN yield decreased to a level of 6.12%.
3. DXY^[1] strengthened to a level of 92.53.
4. 10-year US Treasury (UST) Note^[2] yield increased to a level of 1.139%.

Friday Morning, 5^th February 2021

1. The rupiah opened at a (bid) level of Rp14,010 per US dollar.
2. Benchmark 10-year SBN yield increased to 6.13%.

Foreign Capital Flows (First Week of February 2021)

1. Indonesia 5-year credit default swap (CDS)^[3] premium decreased to 68.4bps as of 4^th February 2021 compared with 74.5bps on 29^th January 2021.
2. Based on transaction data from 1^st-5^th February 2021, non-resident investors booked a net buy totalling Rp12.12 trillion in the domestic financial markets, with a net buy in the SBN market of Rp7.91 trillion and a net buy recorded in the stock market of Rp4.21 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net buy totalling Rp30.22 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 February 2021, monthly inflation in February 2021 is predicted at 0.01% (mtm). Therefore, inflation in February 2021 for the calendar year is estimated at 0.25% (ytd) and 1.26% (yoy) annually.
2. The main deflation contributors in the reporting period were purebred chicken eggs (-0.05% mtm), purebred chicken meat (-0.03% mtm), shallots, tomatoes, bottled water and gold jewellery (-0.01% mtm). In contrast, beef, red chilies and bird's eye chilies (0.01% mtm) experienced inflationary pressures in the reporting period.

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.

• ^[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.
• ^[3] CDS or credit default swaps are an indicator often used as a proxy of country risk.