Pressures from foreign capital flows, particularly in the form of portfolio investment, persist amid the increasing uncertainty about the global financial marketJakarta (ANTARA) - Bank Indonesia (BI) recorded a net capital outflow of US$600 million, in the form of portfolio investment in the Indonesian financial market, in the third quarter ended on September 20, 2022.
"Pressures from foreign capital flows, particularly in the form of portfolio investment, persists amid the increasing uncertainty about the global financial market," BI Governor Perry Warjiyo said during a press conference following the monthly meeting of Bank Indonesia's board of governors here on Thursday.
The capital outflow caused the rupiah to depreciate, though the stability of the currency's exchange rate remained under control, he said.
He said the rupiah fell 1.03 percent point-to-point (ptp) on September 21, compared to late August.
Related news: South Sulawesi: BI helps resident exchange money damaged in fire
The rupiah's exchange rate remained under control due to the domestic supply of foreign currencies and positive perception of domestic economic prospect and BI stability measures.
Overall, the rupiah depreciated 4.97 percent year-to-date (ydt) until September 21, 2022, compared to late 2021.
Related news: BI encourages community-level urban farming to control inflation
The rupiah's depreciation is relatively better than those of other developing nations, such as India (7.05 percent), Malaysia (8.51 percent) and Thailand (10.07 percent).
"Looking ahead, BI will continue strengthening the rupiah exchange rate stability policy, in accordance with its fundamental to support efforts to control inflation and maintain macroeconomic stability," he said.
Related news: BI lowers prediction on global economic growth to 2.8 percent
Related news: BI pushing investment outside Java to reduce growth disparities
Translator: Agatha Olivia V, Suharto
Editor: Fardah Assegaf
Copyright © ANTARA 2022
