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“Early sign of inflation rising may be seen in Q4 2021,” Bank Indonesia (BI) Governor Perry Warjiyo said in a virtual seminar on Friday, adding that the central bank has the time to focus on economic growth.

Additional comments

 Optimistic new sovereign wealth fund will attract foreign capital inflows..

New financial sector omnibus bill intended to accelerate financial market deepening.

No plan to make exporters convert earnings into rupiah this or next year

There had been limited inflows into bonds earlier in Jan, but this has improved in recent auctions.

Capital inflows into bonds are seen higher this year, bond market intervention seen smaller than 2020.

We dont have to immediately raise interest rates when inflation starts rising.

Exit policy may start with absorption of excess liquidity.

When inflationary risk is high, then we can use interest rate policy.

more to come …