Indonesia's July 2026 Foreign Exchange Reserves Stable at US$145.3 Billion

Officers count the US dollars. (Antara - Muhammad Adimaja/YU)

JAKARTA - Bank Indonesia (BI) recorded Indonesia's foreign exchange reserves position at the end of July 2026 at the level of 145.3 billion US dollars. This figure is relatively stable compared to the end of June 2026 which was recorded at 145.6 billion US dollars, or only experienced a slight correction of 0.3 billion US dollars.

The Executive Director of the BI Communication Department, Ramdan Denny Prakoso, explained that the foreign exchange reserves position in July 2026 was mainly influenced by tax and service receipts, as well as the issuance of government global bonds.

"On the other hand, this development occurs in the midst of government foreign debt payments and the rupiah exchange rate stabilization policy by the central bank as a response to the increasing uncertainty of the global financial market," Ramdan said in an official statement in Jakarta, Friday.

Exceeds International Standards of Adequacy

The reserve position at the end of July 2026 is equivalent to financing 5.5 months of imports or 5.3 months of imports and government external debt payments. This figure is far above the international adequacy standard, which generally sets a minimum of 3 months of imports.

Bank Indonesia assesses that the resilience of Indonesia's external sector remains solid and is able to support macroeconomic stability and the national financial system.

"In the future, the resilience of the external sector is expected to remain good supported by an adequate foreign exchange reserve position and capital inflows, in line with investors' positive perceptions of the prospects for the national economy and investment returns that remain attractive," added Ramdan.

BI also reiterated its commitment to continue strengthening synergies with the government to maintain economic stability and support sustainable economic growth.

Recovery Trend and Foreign Capital Flows

For your information, the foreign exchange reserves position at the end of June 2026 had previously recorded the first increase after experiencing a decline for five consecutive months. After touching the highest level of 156.5 billion US dollars at the end of December 2025, foreign exchange reserves had shrunk to 144.9 billion US dollars at the end of May 2026 (down by 11.6 billion US dollars).

The recovery of stability is also driven by the entry of foreign portfolio investment. BI recorded net inflows in the second quarter of 2026 reaching US$ 8.5 billion, mainly supported by State Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI). This positive trend continued until mid-third quarter (as of July 20, 2026) with net inflows of SBN of US$ 0.1 billion.

Meanwhile, to maintain exchange rate stability and control inflation, the BI Board of Governors (RDG) meeting in July 2026 decided to maintain the benchmark interest rate (BI-Rate) at the level of 5.75 percent, after previously raising it cumulatively by 100 basis points (bps) throughout May and June 2026.