Indonesia Forex Reserves Fall to 5-Month Low

Indonesia's foreign exchange reserves fell to USD 148.2 billion in March 2026, from USD 151.9 billion the previous month. This marked the lowest level since July 2024, primarily driven by the Bank of Indonesia's efforts to stabilize the rupiah amidst heightened global market volatility. Despite this drop, the reserve assets remain robust, covering 6.0 months of imports or 5.8 months when accounting for both imports and government external debt servicing. This level is well above the international benchmark of approximately three months of imports, highlighting Indonesia's strong external liquidity position. Looking ahead, Bank Indonesia remains confident that the country's external sector will remain well-supported, bolstered by a healthy reserve position and continued inflows of foreign capital. This optimism is further fueled by positive investor sentiment toward Indonesia's economic prospects and the attractive returns offered by the country’s investment climate.

Indonesia’s foreign exchange reserves fell to USD 151.9 billion in February 2026, from USD 154.6 billion in the previous month. It marked the lowest level since November 2025, primarily driven by government external debt repayments and Bank Indonesia’s efforts to stabilize the Rupiah amid ongoing global financial market uncertainty. Still, Indonesia’s reserve position remains robust, covering 6.1 months of imports or 5.9 months when including external debt servicing, well above the international adequacy standard of around 3 months of imports. Bank Indonesia emphasized that the current level of reserves is sufficient to support external sector resilience and maintain macroeconomic and financial system stability. Looking ahead, the central bank expects the country’s external position to remain stable, underpinned by adequate reserves and continued foreign capital inflows, reflecting positive investor sentiment toward Indonesia’s economic prospects and attractive investment returns.

Indonesia’s foreign exchange reserves declined to USD 154.6 billion in January 2026, down from a nine-month high of USD 156.5 billion in December. The decline was primarily driven by the government’s foreign debt payments and rupiah exchange rate stabilization measures implemented by Bank Indonesia in response to rising uncertainty in global financial markets. The current level is sufficient to cover 6.3 months of imports, or 6.1 months when accounting for the government’s external debt repayments, well above the international adequacy benchmark of around three months of imports. Looking ahead, Bank Indonesia expects external-sector resilience to remain strong, supported by sustained foreign investment inflows. This outlook reflects positive investor perceptions of the national economic outlook and consistently attractive investment returns.