JAKARTA - The position of Indonesia's foreign exchange reserves at the end of May 2025 was 152.5 billion US dollars, or stable compared to the position at the end of April 2025 of 152.47 billion US dollars.
Bank Permata economist Josua Pardede explained that this development was supported by income from taxes and services, as well as foreign exchange income from the oil and gas sector, amid payment of government foreign debt and steps to stabilize Bank Indonesia's exchange rate (BI) in response to persistent global financial market uncertainty.
" Seasonally, dividend payments for domestic financial assets to non-residents, as well as debt interest payments, tend to peak in the second quarter every year," he explained to VOI, Tuesday, June 10.
Josua conveyed that the position of foreign exchange reserves was also strengthened by incoming foreign capital flows which were recorded in the financial market, where in May 2025, the Indonesian financial market recorded a net capital inflow of 2.77 billion US dollars.
He explained that the net capital inflow of 2.77 billion US dollars came from the bond market (SBN) pulling a net flow of 1.80 billion US dollars, the equity market recorded a net flow of 0.34 billion US dollars, and BI (SRBI) short-term debt securities received a net flow of 0.63 billion US dollars.
"This net entry flow was driven by improvements in global market sentiment, which was triggered by a positive signal from trade negotiations between the US and its main trading partners," he explained.
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Josua said the foreign exchange reserve level as of the end of May 2025 was equivalent to 6.4 months of imports or 6.2 months of imports and government foreign debt payments, well above the international adequacy standard of about 3 months of imports.
He estimates that Indonesia's foreign exchange reserves will be in the range of 153 billion US dollars to 157 billion US dollars by the end of 2025 compared to 2024 of 155.72 billion US dollars.
In addition, according to him, the movement of the Rupiah is expected to be traded in the range of Rp. 16,100 per US dollar Rp. 16,400 per US dollar at the end of the 2025 period compared to Rp. 16,102 per US dollar at the end of the previous year.
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