The high access to global liquidity funds had raised the prospect of capital inflows to emerging markets including Indonesia, Bank Indonesia spokesman Difi A Johansyah said here on Tuesday.
"Capital inflows to Indonesia remain high thanks to strong domestic economic fundamentals and interesting yields," he said.
Strong capital inflows to Indonesia would continue, the more so because the country was one step away from investment grade, he said.
"We will always be alert and keep monitoring the financial market so if there is a phenomenon of crisis we have been prepared to deal with it," he said.
Difi said the strong capital inflows were reflected by foreign holding of state debt securities which reached an estimated Rp242 trillion or 33.8 percent of the overall state debt securities issued. Meanwhile, foreign investment put in Bank Indonesia Certificates (SBI) at the central bank reached Rp60.3 trillion or 33 percent of the overall SBI amounting to Rp189 trillion.
(Uu.S012/HAJM/H-YH)
Editor: Priyambodo RH
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