Foreign Exchange Reserves Down 1.4 Billion Dollars, Bank Indonesia: Government Pay Debt

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) stated that the position of foreign exchange reserves at the end of September 2022 was USD 130.8 billion.

Head of the BI Communications Department Erwin Haryono said this figure was lower than at the end of August 2022 which amounted to 132.2 billion US dollars. This means that there has been a decrease in the number of foreign exchange reserves of 1.4 billion dollars in one month.

"The decline in the position of foreign exchange reserves in September 2022 was influenced, among other things, by the payment of government foreign debt," he said in an official statement today, Friday, October 7.

According to Erwin, the collapse of foreign payment equipment also occurred due to the central bank's efforts to maintain Indonesia's macro economy.

"(The decline in foreign exchange) is for the need for rupiah exchange rate stabilization in line with the high uncertainty in global financial markets," he said.

Erwin explained that the position of foreign exchange reserves is equivalent to financing 5.9 months of imports or 5.7 months of imports and payment of government foreign debt.

"This amount is above the international adequacy standard of about 3 months of imports," he said.

Furthermore, the monetary authority assesses that foreign exchange reserves are currently able to support external sector resilience and maintain financial system stability.

"Going forward, Bank Indonesia views foreign exchange reserves as adequate, supported by stability and maintained economic prospects, along with various policy responses in maintaining macroeconomic stability and the financial system to support the national economic recovery process," Erwin concluded.