​No. 23/58/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 March 2021

End of Thursday, 4^th March 2021

1. The rupiah closed at a (bid) level of Rp14,260 per US dollar.
2. Benchmark 10-year SBN yield decreased to a level of 6.56%.
3. DXY[1] strengthened to a level of 91.63.
4. 10-year US Treasury (UST) Note[2] yield increased to a level of 1.564%.

Friday Morning, 5^th March 2021

1. The rupiah opened at a (bid) level of Rp14,260 per US dollar.
2. Benchmark 10-year SBN yield increased to 6.60%.

Foreign Capital Flows (First Week of March 2021)

1. Indonesia 5-year credit default swap (CDS) premium decreased to 76.05bps on 4^th March 2021 compared with 77.4bps on 26^th February 2021.
2. Based on transaction data from 1^st-4^th March 2021, non-resident investors booked a net sell totalling Rp0.40 trillion in the domestic financial markets, with a net sell in the SBN market of Rp1.00 trillion and a net buy recorded in the stock market of Rp0.60 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net buy totalling Rp1.56 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 March 2021, monthly inflation in March 2021 is predicted at 0.09% (mtm). Therefore, inflation in March 2021 for the calendar year is estimated at 0.45% (ytd) and 1.37% (yoy) annually.
2. The main inflation contributors in the reporting period were bird's eye chilies (0.04% mtm), shallots (0.03% mtm), carp, mackerel, tomatoes and purebred chicken eggs (0.01% mtm).  In contrast, red chilies (-0.03% mtm) and gold jewellery (-0.02% 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.

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.