Bank Indonesia: 4.87% Growth 'Robust Enough' for Investors

TEMPO.CO, Jakarta - Bank Indonesia (BI) believes that Indonesia's economic growth of 4.87 percent is still quite high for investors. Head of the Monetary and Securities Asset Management Department of Bank Indonesia, Erwin Gunawan Hutapea, said market players are still looking to invest in Indonesia.

Erwin admitted that since the beginning of the year, Bank Indonesia has recorded a significant outflow of foreign capital from Indonesia, especially from the stock market. "But in the recent auctions, when we look at the State Bonds (SBN) market and the Indonesian Rupiah Securities (SRBI), inflows have begun to occur," Erwin told reporters at the Bank Indonesia office in Central Jakarta on Wednesday, May 7, 2025.

According to Erwin, the influx of capital through the auction of securities indicates that investor confidence is starting to return. He also stated that Bank Indonesia will continue to strive to maintain the instruments and stability of the Rupiah exchange rate.

Moreover, Erwin mentioned that dividend repatriation will continue this month, coupled with upcoming international payments in June. "So, we ensure that there is sufficient liquidity to facilitate the needs of investors who are repatriating dividends and corporations making payments abroad," said Erwin.

Previously, the Central Statistics Agency announced economic growth of 4.87 percent in the first quarter of 2025. This figure is lower than the 5.11 percent in the same period last year. Investment, which contributed 28.03 percent to the GDP, also only grew by 2.12 percent. This is lower than the 3.78 percent investment in the first quarter of 2024.

Meanwhile, Bank Indonesia recorded Rp61 trillion in foreign capital leaving Indonesia from January to April 2025. This amount came from the stock market and the Indonesian Rupiah Securities (SRBI). On the other hand, the foreign capital entering Indonesia amounted to Rp4.15 trillion.

Adil Al Hasan contributed to writing this article

Editor's Choice: BPS: Indonesian Economic Growth Slows to 4.87% in Q1 2025

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