Jakarta, June 29 -- Recent interest rate hikes have driven approximately US$9 billion in foreign portfolio inflows into Indonesia's central bank securities and government bonds this year, a senior monetary official said Monday.

Bank Indonesia (BI) Senior Deputy Governor Destry Damayanti announced that foreign capital flowing into BI Rupiah Securities (SRBI) and sovereign bonds (SBN) accelerated heavily between January and June 26, with June logging a substantial share of the momentum.

"There has been a fairly significant inflow during June," Damayanti told a joint press conference with legislative leaders in Jakarta. "Year-to-date... inflows into our SBN and SRBI portfolio have reached around US$9 billion."

The central bank aggressivel...