Jakarta, July 2 -- Recent interest rate hikes have driven approximately 9 billion USD in foreign portfolio inflows into Indonesia's central bank securities and government bonds this year, according to an official from the country's central bank.

Bank Indonesia (BI) Senior Deputy Governor Destry Damayanti said most of the inflows had gone into BI Rupiah Securities (SRBI) and government bonds (SBN), reflecting continued confidence among international investors despite global economic uncertainty.

The stronger capital inflows came after Bank Indonesia raised its benchmark interest rate by a total of 100 basis points in May and June to 5.75%.

Tighter monetary policy aims to stabilise the rupiah, reduce volatility in financial markets and m...