​No.23/ 128 /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 17^th-21^st May 2021

End of Thursday, 20^th May 2021

1. The Rupiah closed at a (bid) level of Rp14,370 per US dollar.
2. Benchmark 10-year SBN yield increased to a level of 6.49%.
3. DXY[1] weakened to a level of 89.81.
4. 10-year US Treasury (UST) Note[2] yield decreased to a level of 1.625%.

Friday Morning, 21^st May 2021

1. The Rupiah opened at a (bid) level of Rp14,330 per US dollar.
2. Benchmark 10-year SBN yield decreased to 6.46%.

Foreign Capital Flows (Third Week of May 2021)

1. Indonesia 5-year credit default swap (CDS) premium increased to 77.45 bps on 20^th May 2021 compared with 76.11 bps on 14^th May 2021.
2. Based on transaction data from 17-20^th May 2021, non-resident investors booked a net sell totalling Rp1.48 trillion in the domestic financial markets, with a net sell in the SBN market of Rp0.89 trillion and a net sell recorded in the stock market of Rp0.59 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net sell totalling Rp13.23 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 May 2021, monthly inflation in May 2021 remains under control and is predicted at 0.33% (mtm). Therefore, inflation in May 2021 for the calendar year is estimated at 0.91% (ytd) and 1.69% (yoy) annually.
2. The main inflation contributors in the reporting period were intercity transport fares (0.11% mtm), purebred chicken meat (0.07% mtm), beef (0.03% mtm), oranges, cooking oil and gold jewellery (0.02% mtm) as well as coconut, spinach, potatoes, fresh shrimp, mackerel tuna and airfares (0.01% mtm).  In contrast, bird's eye chilies (-0.04% mtm), red chilies (-0.03% mtm) and purebred chicken eggs (-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, 21^st May 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.