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No. 23/70/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 15-19^th March 2021

End of Thursday, 18^th March 2021

1. The rupiah closed at a (bid) level of Rp14,390 per US dollar.
2. Benchmark 10-year SBN yield increased to a level of 6.75%.
3. DXY¹ strengthened to a level of 91.86.
4. 10-year US Treasury (UST) Note² yield increased to a level of 1.708%.

Friday Morning, 19^th March 2021

1. The rupiah opened at a (bid) level of Rp14,400 per US dollar.
2. Benchmark 10-year SBN yield increased to 6.85%.

Foreign Capital Flows (Third Week of March 2021)

1. Indonesia 5-year credit default swap (CDS) premium decreased to 75.54bps on 18^th March 2021 compared with 79.8bps on 12^th March 2021.
2. Based on transaction data from 15-18^th March 2021, non-resident investors booked a net buy totalling Rp3.81 trillion in the domestic financial markets, with a net buy in the SBN market of Rp3.39 trillion and a net buy recorded in the stock market of Rp0.42 trillion.
3. Based on settlement data in 2021 (ytd), non-resident investors have booked a net sell totalling Rp11.0 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 March 2021, monthly inflation in March 2021 is predicted at 0.09% (mtm). Therefore, inflation in March 2021 for the calendar year is estimated at 0.45% (ytd) and 1.37% (yoy) annually.
2. The main inflation contributors in the reporting period were bird's eye chilies (0.04% mtm), shallots (0.03% mtm), carp and tomatoes (0.01% mtm).  In contrast, red chilies and gold jewellery (-0.03% 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, 19th March 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.