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No. 23/167/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 5-9^th July 2021

End of Thursday, 8^th July 2021

1. The Rupiah closed at a (bid) level of Rp14,520 per US dollar.
2. Benchmark 10-year SBN yield decreased to a level of 6.51%.
3. DXY¹ strengthened to a level of 92.42.
4. 10-year US Treasury (UST) Note² yield decreased to a level of 1.293%.

Friday Morning, 9^th July 2021

1. The Rupiah opened at a (bid) level of Rp14,520 per US dollar.
2. Benchmark 10-year SBN yield remained stable at 6.51%.

Foreign Capital Flows (Second Week of July 2021)

1. Indonesia 5-year credit default swap (CDS) premium increased to 77.79bps on 8^th July 2021 compared with 73.43bps on 2^nd July 2021.
2. Based on transaction data from 5-8^th July 2021, non-resident investors booked a net buy totalling Rp0.64 trillion in the domestic financial markets, with a net buy in the SBN market of Rp1.20 trillion and a net sell recorded in the stock market of Rp0.56 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net buy totalling Rp9.41 trillion in the domestic financial markets.
    

B.   Inflation Remains Low and Under Control

1. Based on the latest Price Monitoring Survey in the second week of July 2021, monthly price developments in July 2021 remain under control and inflation is predicted at 0.02% (mtm). Therefore, inflation in July 2021 for the calendar year is estimated at 0.76% (ytd) and 1.46% (yoy) annually.
2. The main inflation contributors in the reporting period were bird's eye chilies (0.03% mtm), as well as tomatoes, shallots, spinach, water spinach and yardlong beans (0.01% mtm). In contrast, purebred chicken meat (-0.07% mtm), purebred chicken eggs (-0.02% mtm), gold jewellery (0.02% mtm) as well as oranges and red chilis (-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, 9^th July 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.