Indonesia Forex Reserves Largest in 7 Months

Indonesia’s foreign exchange reserves slightly increased to USD 146.8 billion in October from USD 146.3 billion in the previous month. It was the highest level of foreign exchange reserves since March, supported by government external loan withdrawals and tax and service revenues. However, the increase was partly offset by repayments of maturing government foreign debt and Bank Indonesia’s rupiah stabilization measures in response to persistent uncertainty in global financial markets. The reserve assets were equivalent to 5.3 months of imports, or 5.2 months of imports and government external debt servicing, well above the international adequacy benchmark of around three months of imports. Looking ahead, Bank Indonesia expects external sector resilience to remain solid, supported by ample foreign exchange reserves and sustained foreign capital inflows.

Indonesia’s forex exchange reserves slightly fell to USD 146.3 billion in September from a five-month high of USD 146.5 billion in the previous month. The decline was primarily due to government external loan withdrawals and tax and services receipts, amid repayments of maturing government foreign debt and Bank Indonesia’s rupiah stabilization measures in response to persistent uncertainty in global financial markets. Despite the decline, reserve assets remained robust, equivalent to 5.3 months of imports, or 5.2 months of imports and government external debt servicing, well above the international adequacy benchmark of around three months of imports. Looking ahead, Bank Indonesia expects external sector resilience to remain solid, supported by ample foreign exchange reserves and sustained foreign capital inflows, underpinned by positive investor sentiment toward Indonesia’s economic prospects and attractive investment returns.

Indonesia’s foreign exchange reserves rose to USD 146.5 billion in August from USD 145.3 billion in the previous month. It marked the highest level since March, primarily driven by higher tax and services receipts and government withdrawals of external loans, which more than offset external debt repayments and Bank Indonesia’s Rupiah stabilisation measures amid persistent uncertainty in global financial markets. The reserves remained robust, covering 5.4 months of imports, or 5.3 months of imports and government external debt servicing, well above the international adequacy standard of around 3 months of imports. Bank Indonesia said the reserve buffer was sufficient to bolster external sector resilience and safeguard macroeconomic and financial stability. Looking ahead, it expects resilience to remain supported by adequate reserves and continued foreign capital inflows, amid positive investor sentiment toward Indonesia’s economic outlook and attractive returns.