Foreign portfolio inflows have returned to the stock market, while capital outflows from the SBN market have subsided, especially since October 2022 (Graph 11). Bank Indonesia monetary policy normalization policy were conducted by gradually reducing the excess liquidity in the banking system. Liquidity policy normalization is administered by raising Rupiah reserve requirements in a well-calibrated, well-planned, and well-communicated manner.
On the other hand, it is also true that, if we look beyond the challenges that we may be facing in the short term, we cannot be satisfied with the results achieved up to date. Indeed, much remains to be done.