VIVAnews - Bank Indonesia revealed that foreign investors have purchased the Bank Indonesia Certificate (SBI) worth Rp 40 trillion (US$4.3 billion) up until May 2009.
"Half of the Bank Indonesia Certificate has been withdrawn," said Bank Indonesia Deputy Governor, Hartadi A Sarwono, today, June 2.
According to Hartadi, the withdrawn certificate has caused the Indonesian rupiah to depreciate along May 2010. However, the central bank viewed that its intervention in the currency has reduced the impact the Bank Certificate might bring.
On the other occasion, acting Governor of Bank Indonesia Darmina Nasution admitted that the European debt crisis has brought negative sentiment to the financial market.
"As a result, flight-to-quality from US dollar to gold occurs," said Darmin.
Learning from the situation, Darmin said that the central bank is now evaluating the chance of regulating the Bank Indonesia Certificate. "We're trying to examine about the case. But don't ever try to regulate both capital outflow or inflow," he said.
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Translated by: Bonardo Maulana W
