BI Calls Fund Defence Policy to Rp162.3

The Indonesian bank (BI) calls the incentive policy for hedging (hedging) bringing a stream of foreign funds worth of US $8 billion to US $9 billion or equal Rp144.35 trillion to Rp162.39 trillion.

The fund entered through foreign exchange swap (FX swap) and domestically non-deliverable forward (DNDF).

The Governor of BI's Demarry Damayanti said the incentive for hedging fees was given since last June as one of the attempts to maintain stability of the value of the exchange of the complex global uncertainty.

"The inductive hedging fee that we also gave from the end of June, and to this day it could have been an inflop, either in the form of a FX swap, or in the form of a DNDF worth about US $8 billion to US $9 billion," said the Purry in a press statement at the Mercana Palace, Jakarta Center, Monday (19 / 10).

In addition to these incentives, the BI still intervenes in foreign market values, both through both spot transactions and DNDF instruments and non-deliverable forward (NDF).

Destrry says the central bank will continue to monitor the rupiah movement in the middle of global market volatile.

It explains that the pressure against the rupiah is still affected by the conditions of the global economy, including inflation that has not reached its target in a number of countries and uncertainty towards the central interest rates of the Fed.

"The point is that the Indonesian Bank will always remain on the market. We were asked by the President (Prabowo Subianto) to continue to see, the efforts of our policies, whether it was an intervention at the spot, the DNDF, or the NDF, or in the incentive of hedging costs,

In the country, the BI is also looking at inflation development. Destrry called the core inflation in September still under control at 2.8 percent, while food inflation was at 5 percent volatile food.

In order to control food inflation, the central bank will coordinate with the Ministry of Agriculture to get that inflation back on target, which is 2.5 percent of the plus-minus 1 percent.

Destrry added relatively stable rupiah in the last two days, although global markets are still churning. It says the movement is also in line with the slowdown that's happening in a number of emerging markets.

With these steps, the BI claims to continue to maintain complex stability, both on the side of exchange and inflation, while monitoring the development of the global economy.