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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 25-29^th January 2021

End of Thursday, 28^th January 2021

1. The rupiah opened at a (bid) level of Rp14,050 per US dollar.
2. Benchmark 10-year SBN yield decreased to a level of 6.21%.
3. DXY[1] strengthened to a level of 90.46.
4. 10-year US Treasury (UST) Note[2] yield decreased to a level of 1.045%.

Friday Morning, 29^th January 2021

1. The rupiah opened at a (bid) level of Rp14,035 per US dollar.
2. Benchmark 10-year SBN yield increased to 6.22%.

Foreign Capital Flows (Fourth Week of January 2021)

1. Indonesia 5-year credit default swap (CDS)[3] premium increased to 73.80bps as of 28^th January 2021 compared with 72.24bps on 22^nd January 2021.
2. Based on transaction data from 25-28^th January 2021, non-resident investors booked a net buy totalling Rp0.75 trillion in the domestic financial markets, with a net buy in the SBN market of Rp0.20 trillion and a net buy recorded in the stock market of Rp0.55 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net buy totalling Rp22.14 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 January 2021, monthly inflation in January 2021 is predicted at 0.34% (mtm). Therefore, inflation in January 2021 for the calendar year is estimated at 0.34% (ytd) and 1.64% (yoy) annually.
2. The main inflation contributors in the reporting period were bird's eye chilies (0.10% mtm), tempeh and tofu (0.03% mtm), intercity transportation fares (0.02% mtm), water spinach, Chinese spinach (bayam), beef, purebred chicken meat, long beans, red chili, mackerel, gold jewellery, rice with a side dish and airfares (0.01% mtm).  In contrast, purebred chicken eggs (-0.06% mtm) and shallots (-0.02% mtm) experienced deflationary 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.

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.

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