Jakarta, CNBC Indonesia – Bank Indonesia (BI) is optimistic that the Indonesian financial market will be invaded by foreign investors. Thus, the rupiah can be strong against the United States (US) dollar.
“The opportunity is still very big because our fundamental aspects are well maintained. Both of our market mechanisms are well maintained, we make sure all are maintained,” said Head of the Department of Economic and Monetary Policy of Bank Indonesia (BI), Edi Susianto to CNBC Indonesia, Friday (10/6). /2022)
The fundamental aspect is seen from the continued economic recovery, controlled inflation and credible fiscal and monetary policies. In addition, there is a surplus current account and adequate foreign exchange reserves (cadev).
Moreover, the global situation is back to being conducive. For example, the Covid-19 pandemic ended and there was a meeting point from the wars between Russia and Ukraine to the midst of the United States and China.
“If the risk off will subside, I have confidence that foreign investors, both in bonds and stocks, will re-enter our domestic market and that has been the case for the last two weeks in mid-May,” he explained.
|
Photo: Maintaining Rupiah Stability, BI Beware of These 3 Global Sentiments (CNBC Indonesia TV) Maintaining Rupiah Stability, BI Beware of These 3 Global Sentiments (CNBC Indonesia TV)- – |
However, Edi said that his party is preparing to anticipate if the uncertainty gets higher. This includes coordinating with the government, financial services authorities (OJK) and the Deposit Insurance Corporation (LPS) and other interested parties.
“This really depends on what happens, issues related to Russian-Ukrainian geopolitics, many analysts predict that Russia-Ukraine geopolitics will last a little longer, so this is likely to provide a lot of uncertainty, especially the impact on global financial markets and the global economy,” he concluded.
Next article
The Fed’s Hawkish Kick Can Tame Inflation?
–
–
(me/me)
–
