Plan to issue SBI aimed at attracting capital: minister

Plan to issue SBI aimed at attracting capital: minister

(ANTARA PHOTO/Nova Wahyudi)

Jakarta, (ANTARA News) - Bank Indonesia`s plan to issue SBI certificates with 9-month and 12-month tenors is aimed at attracting foreign exchange liquidity, Coordinating Minister for Economic Affairs Darmin Nasution said.

"If the SBI is liquid, it can be used as an investment instrument," Nasution said here on Friday.

Given the current uncertainty in the market, the central bank must formulate investment instruments to allow foreign capital to stay longer in the country, he explained.

"Under the current situation, we need to give investors room to invest in the country, and Bank Indonesia has responded to it by creating more investment instruments," he said.

Nasution expressed hope that investors will not hurry in bringing their capital abroad and that they will continue to invest in the investment instruments.

Bank Indonesia is considering reactivating SBIs with 9-month and 12-month tenors to increase portfolios that can absorb foreign capital. In doing so, the instruments will be able to serve as instruments to stabilize the rupiah.

"We want to expand instruments probably by reactivating SBIs," Bank Indonesia Governor Perry Warjiyo said on Thursday, July 19. "We are still studying (the possibility). We will announce (the issuance of the SBIs) in the near future."