Perry Warjiyo Hopes Foreign Investment Flows to Indonesia

Jakarta, MINA — Governor of Bank Indonesia,(BI) Perry Warjiyo, said he hopes foreign investors would buy Indonesian state securities (SBN) to increase US dollar supply in the country and help stabilize rupiah, Antara News reported.

“With the auction of SBN, foreign investors nbegin to enter and that will help stabilize exchange rate,” he said after a meeting at the Finance Ministry here on Tuesday.

The meeting also attended by the chief commissioner of the Financial Service Authority (OJK) Wimboh Santoso, discussed the prevailing economic issue such as economic growth and stability.

Commenting on the sinking rupiah, Warjiyo pledged that the Central Bank would continue to stay in the market to take necessary steps to stabilize rupiah.

The Central Bank would intervene in the market including buying SBN in the secondary market, he said.

He said the central bank has raised its benchmark interest rate to lure in foreign investors to the Indonesian financial market especially the state bond market.

He said while waiting for large foreign investment to enter the Indonesian financial market intervention by Bank Indonesia will continue.

Bank Indonesia will buy SBN sold by foreign investors in the secondary market,”certainly at a market price,” he said.

Bank Indonesia will also continue to strengthen coordination with the government and OJK to cope with rupiah instability in short term and to boost growth, he said.

Rupiah traded in interbank transactions at the level of 14,397 weakening from earlier level of 14,390 per US dollar. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)