Bank Indonesia (BI) estimates that foreign capital flows into Indonesia is still going on in 2011. However, Bank Indonesia does not consider the need for restriction or control the foreign capital.
Governor of Bank Indonesia BI Nasution said that the instrument is currently considered able to control the flow of foreign capital. Eg with the policy of holding ownership of Bank Indonesia Certificates (SBI) for a month.
"So far, its application was effective to manage the flow of capital in the SBI," Nasution said in the House of Representatives Commission XI (Parliament), Jakarta, Tuesday, September 21st 2010.
To that end, the BI rate policy in a more stringent capital controls are not yet needed.
Nasution said the flow of foreign capital into the financial system in Indonesia over the last 1.5 years is pretty big. In 2011, estimated volume and higher frequency.
However, according to him, the risk of capital reversals are also expected to be a threat. The impact will affect the rupiah.
That condition which, according to the BI to be a challenge next year on the assumption of the exchange rate. "But, the exchange rate per U.S. dollar Rp9.250 it realistic," he said
"So far, its application was effective to manage the flow of capital in the SBI," Nasution said in the House of Representatives Commission XI (Parliament), Jakarta, Tuesday, September 21st 2010.
To that end, the BI rate policy in a more stringent capital controls are not yet needed.
Nasution said the flow of foreign capital into the financial system in Indonesia over the last 1.5 years is pretty big. In 2011, estimated volume and higher frequency.
However, according to him, the risk of capital reversals are also expected to be a threat. The impact will affect the rupiah.
That condition which, according to the BI to be a challenge next year on the assumption of the exchange rate. "But, the exchange rate per U.S. dollar Rp9.250 it realistic," he said
