JABAR EKSPRES – Minister of Finance, Sri Mulyani said, the rupiah exchange rate showed better performance than the United States (US) dollar.
“Our rupiah exchange rate is among those that have appreciated, compared to the US dollar and many countries that have corrected quite deeply,” Ms Indrawati said at a press conference on the July 2023 edition of the State Budget KiTa monitored online in Jakarta, Monday (7/24).
The Ministry of Finance noted that the rupiah exchange rate has continued its appreciation trend since the beginning of 2023, with an achievement of 4.7 percent year-to-date (ytd) as of July 21, 2023.
Meanwhile, the US dollar index is still depreciating at 2.4 percent due to market perceptions of the direction of US monetary policy.
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Apart from the US dollar, a number of countries also showed depreciating exchange rates, such as the South Korean won which depreciated at 1.8 percent, the Malaysian ringgit at 3.6 percent, and the Japanese yen at 8.1 percent.
On the other hand, foreign capital flows into the Indonesian financial market still recorded inflows until the third week of July.
Inflow into Government Securities (SBN) was recorded at IDR86.18 trillion ytd, with inflow in June amounting to IDR17.53 trillion and July inflow amounting to IDR1.48 trillion.
Meanwhile, inflow in the stock market was recorded at IDR19.22 trillion ytd. In June, the stock market recorded an outflow of Rp4.38 trillion. Then in July, an inflow of Rp3.02 trillion was recorded.
“One thing that we should also note is that the yield of Indonesian SBN continues to improve, so that we can reduce the cost of funds in the midst of the Federal Reserve which continues to raise interest rates,” the Minister explained.
According to Sri Mulyani, the good performance of the SBN market is supported by sufficient domestic liquidity and the performance of foreign capital flows into the country.
