Paying Foreign Debt, Indonesia's Foreign Exchange Reserves Drop To $140.4 Billion In March 2024

Illustration of rupiah banknotes (ANTARA)

JAKARTA - Bank Indonesia (BI) recorded the position of Indonesia's foreign exchange reserves at the end of March 2024 remained high at US$ 140.4 billion, although it decreased compared to the position at the end of February 2024 of US$144.0 billion.Assistant Governor of the Communication Department Erwin Haryono said the decline in the position of foreign exchange reserves was influenced, among others by government foreign debt payments, anticipation of corporate foreign exchange liquidity needs, and the need for stabilization of the Rupiah exchange rate in line with the high uncertainty of the global financial market. "The position of foreign exchange reserves is equivalent to financing 6.4 months of imports or 6.2 months of imports and payment of government foreign debt, as well as being above the international adequacy standard of about 3 months of imports," he explained in his statement, quoted on Sunday, April 7. Erwin said that Bank Indonesia assessed that the foreign exchange reserves were able to support the resilience of the external sector and maintain macroeconomic and financial stability.

In the future, Erwin said, Bank Indonesia views that foreign exchange reserves will remain adequate, supported by stability and maintained national economic prospects. This is in line with the synergy of the policy mix taken by Bank Indonesia and the Government in maintaining macroeconomic and financial system stability to support sustainable economic growth.