Assesing Policy Response - Stability over Growth (?)
Key Takeaways :
▪️ M2 money supply continued to expand in May 2024, reaching IDR8,965.9 trillion, reflecting a +7.6% YoY increase.
▪️ Bank Indonesia's Board of Governors (RDG) opted to hold the BI-Rate steady at 6.25% during their meeting on June 19-20.
▪️ The recent IDR depreciation is due to global financial market volatility, foreign capital outflows, and heightened perception on future fiscal sustainability.
▪️ During March and April, foreign investors engaged in shifting funds from the domestic market to other EMDE’s in Asia, like India, Thailand, and South Korea.
▪️ As of June 14, 2024, SRBI totaled IDR 666.53 trillion, with foreign ownership at IDR 179.86 trillion (~27%).
▪️ Until 2H24, the government through the MoF appeared to withhold the issuance of SBN amidst high cost of funds to maintain a controlled debt position.
Disclaimer On
