- VIVAnews/Nurcholis Anhari Lubis
VIVAnews - Bank Indonesia stated that the temporary cancellation of three-month tenure Bank Indonesia Certificate (SBI) auction was set out to funnel capital inflow through to other investment instruments.
"The delay in trading is not forever," said BI Deputy Governor, Hartadi A Sarwono, in Jakarta today, Nov 11.
According to Hartadi, amidst the rapid capital inflow, BI expects the fund can be re-absorbed by other instruments but SBI. "We'll shut down the three-month SBI," he said.
The plan was initiated as Bank Indonesia saw foreign investors could freely make use and, on the other hand, cast loose the SBI instrument.
Hartadi said that the three-month SBI is still considered important as the benchmark interest rate of state bonds.
"The best choice will be by multiplying investment instruments," said Hartadi.
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Translated by: Bonardo Maulana W