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No. 23/174/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 12-16^th July 2021

End of Thursday, 15^th July 2021

1. The Rupiah closed at a (bid) level of Rp14,480 per US dollar.
2. Benchmark 10-year SBN yield decreased to a level of 6.36%.
3. DXY¹ strengthened to a level of 92.62.
4. 10-year US Treasury (UST) Note² yield decreased to a level of 1.299%.

Friday Morning, 16^th July 2021

1. The Rupiah opened at a (bid) level of Rp14,490 per US dollar.
2. Benchmark 10-year SBN yield remained stable at 6.36%.

Foreign Capital Flows (Third Week of July 2021)

1. Indonesia 5-year credit default swap (CDS) premium increased to 77.03bps on 15^th July 2021 compared with 76.65bps on 9^th July 2021.
2. Based on transaction data from 12-15^th July 2021, non-resident investors booked a net buy totalling Rp7.55 trillion in the domestic financial markets, with a net buy in the SBN market of Rp5.73 trillion and a net buy recorded in the stock market of Rp1.82 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net buy totalling Rp0.86 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 July 2021, monthly price developments in July 2021 remain under control and inflation is predicted at 0.01% (mtm). Therefore, inflation in July 2021 for the calendar year is estimated at 0.75% (ytd) and 1.45% (yoy) annually.
2. The main inflation contributors in the reporting period were bird's eye chilies (0.03% mtm), as well as tomatoes, water spinach, shallots, spinach, yardlong beans and filtered clove cigarettes (0.01% mtm). In contrast, purebred chicken meat (-0.08% mtm), purebred chicken eggs (-0.03% mtm), gold jewellery (-0.02% mtm), oranges (-0.02% mtm), red chilis and potatoes (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, 16^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.