Entry of Foreign Capital Flows Reach Rp13 Trillion

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Entry of Foreign Capital Flows Reach Rp13 Trillion

Monday, 02 August 2010 08:14

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Entry of Foreign Capital Flows Reach Rp13 Trillion
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Jakarta - Bank Indonesia recorded the flow of foreign capital into Indonesia reach around Rp13 trillion during July 2010.

"During July I think it was money coming from outside of about Rp13-14 trillion," said Acting (Acting) Governor BI Nasution Caring Coins after the launch of the National Movement in Jakarta, Saturday.

According to him, the entry of foreign funds flow that occurs because investors see Asia is far more promising than the United States (U.S.) and Europe.

"In a world of good communication as now there must be a flow of funds, first to the SBI because now there is a minimum rule of` holding `a month," he said.

Nasution said the incoming funds were mainly in Government Securities (SUN) and shares. "Tens of trillions of rupiah SUN and goes straight into stocks, SBI these days does not change that number by one month ago," he said.

Asian economic growth is good also causes the strengthening exchange rate of Asian countries including the rupiah.

On Friday, the rupiah strengthened to achieve the level of Rp8.950 per U.S. dollar. BI cautious appreciation of the rupiah which has been complained by the exporter.

"Exporters many grumble-grumble` `because of the dollar eroded these days," he said.

The strengthening of rupiah, he said, occurred because the economic fundamentals countries in Asia are much stronger than Europe and America.

"Too good not too strong, but we are determined to maintain (the rupiah)," he asserted.

Meanwhile, Trade Minister Mari Elka Pangestu said the strengthening of the rupiah against the U.S. dollar will increase the costs borne by exporters.

"We must try to reduce the cost of exporters for cost productionnya, so it should reduce the high cost economy. Aspects of processing costs, restitution and other measures that should be improved," he said.

The Minister added that the government will maintain the stability of the rupiah against the U.S. dollar. "We keep the balance, an important stable, and that the task of BI," he said.
(ANTARANews)
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