​​No. 23/186/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 26-30^th July 2021

End of Thursday, 29^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 6.28%.
3. DXY[1] weakened to a level of 91.86.
4. 10-year US Treasury (UST) Note[2] yield decreased to a level of 1.269%.

Friday Morning, 30th July 2021

1. The rupiah opened at a (bid) level of Rp14,420 per US dollar.
2. Benchmark 10-year SBN yield increased to a level of 6.29%.

Foreign Capital Flows (Fifth Week of July 2021)

1. Indonesia 5-year credit default swap (CDS) premium increased to 79.09bps on 29^th July 2021 compared with 77.21bps on 23^rd July 2021.
2. Based on transaction data from 26-29^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 Rp1.12 trillion and a net sell recorded in the stock market of Rp0.47 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net buy totalling Rp3.78 trillion in the domestic financial markets.
   
   

B.     Inflation Remains Low and Under Control

1. Based on the latest Price Monitoring Survey in the fifth 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), tomatoes and shallots (0.02% mtm), as well as water spinach, spinach, yardlong beans and filtered clove cigarettes (0.01% mtm). In contrast, purebred chicken meat (-0.09% mtm), purebred chicken eggs, gold jewellery and oranges (-0.02% mtm), as well as rice and airfares (-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, 30^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.