BI Governor Agus Martowardojo said at the House of Representatives (DPR) building here on Monday foreign capital outflows reached Rp11 trillion as of early July after investors released the holding of state debt securities worth Rp9 trillion and funds from the capital market worth Rp2 trillion.
"But overall, our net inflows reach Rp117 trillion compared to Rp126 trillion for all of 2016," he said.
Agus said global investors rising confidence in the Federal Reserves policy to raise its interest rate again later this year has led to the capital outflows.
The money market also has been prepared for a plan to reduce the Feds balance sheet, which will add to pressure on the global money market, he said.
"In addition, the US Manufacture Index has also been improving. So the foreign capital outflows are not the result of the governments policy to raise the budget deficit," he said.
Despite the foreign capital inflows, pressure on the rupiahs stable exchange rate early July remained. The pressure on the rupiahs exchange rate was the result of the US investment index which increased, causing the dollar to strengthen.(*)
Editor: Heru Purwanto
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