Bank Indonesia: Foreign Exchange Reserves June 2023 Stay High

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) reported that the position of Indonesia's foreign exchange reserves at the end of June 2023 remained high at 137.5 billion US dollars.

Head of the BI Communications Department Erwin Haryono said the foreign payment instrument remained adequate despite a decline compared to the position at the end of May 2023 of 139.3 billion US dollars.

"The decline in the position of foreign exchange reserves is influenced, among other things, by the payment of government foreign debt," he said in a written statement on Friday, July 7.

According to Erwin, the position of foreign exchange reserves is equivalent to financing 6.1 months of imports or 6.0 months of imports and payment of government foreign debt.

"This is above the international adequacy standard of about 3 months of imports. Bank Indonesia considers that foreign exchange reserves are still able to support the resilience of the external sector and maintain macroeconomic and financial system stability," he stressed.

Erwin also ensured that the monetary authority would continue to keep foreign exchange reserves safe.

"In the future, Bank Indonesia views that foreign exchange reserves will remain adequate, supported by stability and maintained economic prospects, in line with the policy mix response that was pursued with the government in maintaining macroeconomic and financial system stability to support sustainable economic growth," he concluded.