Foreign Exchange Reserves Raised 1.7 Billion US Dollars, Bank Indonesia Reveals Taxes And Debt As The Cause

Dollar illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia has confirmed that Indonesia's foreign exchange reserves are in a well-maintained condition. This is indicated by the position of foreign exchange reserves at the end of April 2021, which was recorded at 138.8 billion US dollars, an increase compared to the position at the end of March 2021 of 137.1 billion US dollars.

Head of the BI Communication Department Erwin Haryono said the increase in foreign payment instruments was supported by the state revenue sector as well as the revenue collected by the government from third parties.

"The increase in the position of foreign exchange reserves in April 2021 is mainly influenced by tax and service revenues and the withdrawal of government foreign loans", he said in an official statement on Friday, May 7.

Erwin added, the position of foreign exchange reserves this month is equivalent to financing 10.0 months of imports or 9.6 months of imports and servicing government foreign debt.

He further explained that Indonesia has the capability above the international adequacy standard, namely by financing around 3 months of imports.

"Bank Indonesia considers the foreign exchange reserves to be able to support the resilience of the external sector and maintain macroeconomic and financial system stability", he said.

For information, the increase in foreign exchange in April 2021 is different from what happened in March 2021.

At that time, the monetary authority released information that the foreign exchange reserves at the end of March 2021 fell to 137.1 billion US dollars compared to the close of February 2021.

It is known that the decline in foreign exchange reserves in March 2021 was mainly influenced by the payment of government external debt according to the payment maturity pattern.

However, the Head of Bank Indonesia Communication Department said that in terms of the macro-structure of the Indonesian economy, it was still quite conducive.

"Going forward, Bank Indonesia views that foreign exchange reserves will remain adequate, supported by stability and maintained economic prospects, along with various policy responses to promote economic recovery", Erwin concluded.