The Flood of Emerging Foreign Capital Strengthens Indonesia Exchange Reserves

indonesianindustry.com

"The flood of emerging capital increases rapidly indonesian foreign exchange to $115.7 billions"

There is fast growing foreign capital entry along in the state along 2016.

The capital entry that emerges the capital market has bolstered the exchange reserves which is a good indication of investment raising around 2.2 billion dollars from $ 113.5 billions to $ 115.7 billions from augustus to september 2016.

Senior deputy governor of bank indonesia mirza adityaswara on friday september 7th,2016 stated the amount of foreign exchange reserves continues to rise throughout the year out of the rapid entry of foreign capital into the stock market. This flood of entry capital is also much caused by the movement of fed interest rates that continues to awake and alarm the global market.

The senior deputy of governor claimed that the success of tax amnesty for the first period from juli to september 2016 with the total ransom of Rp 97.2 trillion and repatriation Rp 137 trillion also increases the trust of market participants.

In addition the strength of foreign exchange is influenced also by oil and gas tax revenue, withdrawal of foregin government debt and auction of securities of bank of indonesia.

Indonesia foregn exchange reserves by the end of september is claimed to funance 8.9 months of imports and government debt payment likewise above international standar approximately 3 months of imports. Such amount of foreign exchange reserve is capable to support the resilience of the external factors and keeping te contonuity of economy growth in the future.