Based on these conditions in the market, rupiah-denominated government bonds held by foreign investors decreased to 29.4 percent from 30.4 percent and SBI bonds had slid to 26.4 percent from 31.1 percent.
Jakarta (ANTARA News) - Bank Indonesia (BI) said the country`s financial system last week had remained stable despite pressure caused by a foreign investment outflow triggered by worries over an expected inflation spiral.

BI public relations official Difi A. Johansyah said here Wednesday that in the second week of January there had been selling moves by foreign investors as they lost interest in all domestic financial assets which kept sliding vis-a-vis the native sentiments in the regional market and worries over inflationary tendencies including in Indonesia.

He added there had also been indications that banking intermediary activities had slid slightly due to seasonal January effects, although liquidity had remained adequate.

Based on these conditions in the market, rupiah-denominated government bonds held by foreign investors decreased to 29.4 percent from 30.4 percent and SBI bonds had slid to 26.4 percent from 31.1 percent.

According to him, Indonesia`s fundamental conditions remained solid as reflected by an increase in the ratings of government bonds both in foreign currencies and the rupiah as presented by Moody`s from Ba2 to Ba1 with a stable outlook until January 17, 2011.

In a press release, Moody`s stated the key factors supporting this action were economic resilience based on a sustained macroeconomic balance, an improved position of government debt and the central bank`s foreign currency reserves and improved prospects for foreign direct investment inflows.

Further improvements in the above mentioned factors will be the determinants for a further increase in the country`s sovereign rating, according to Moody.

Meanwhile, in its weekly report, credits were reported to have decreased 2.56 trillion rupiahs to 1,722.32 trillion rupiahs compared with the previous week`s figure.(*)

Editor: Aditia Maruli Radja
Copyright © ANTARA 2011