BI: Indonesia's Foreign Exchange Reserves Drop to 133.1 Billion US Dollars

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) reported that Indonesia's foreign exchange reserves at the end of October 2023 had decreased to 133.1 billion US dollars, compared to the position at the end of September 2023 of 134.9 billion US dollars.

"The decline in the position of foreign exchange reserves was influenced, among other things, by the government's foreign debt payments and the need to stabilize the rupiah exchange rate," said BI Communications Department Director Nita A Muelgini, quoted by ANTARA, Tuesday, November 7.

Payment of government foreign debt and efforts to stabilize the rupiah exchange rate were carried out as steps to anticipate the spillover impact due to increasing global financial market uncertainty.

The position of foreign exchange reserves is equivalent to financing 6.1 months of imports or 5.9 months of imports and payment of government foreign debt, and is above the international adequacy standard of around three months of imports.

Bank Indonesia assesses that foreign exchange reserves are capable of supporting the resilience of the external sector and maintaining macroeconomic and financial system stability.

Going forward, BI views that foreign exchange reserves will remain adequate, supported by maintained economic stability and prospects, in line with the policy mix response taken by Bank Indonesia in maintaining macroeconomic and financial system stability to support sustainable economic growth.

Previously, Bank Indonesia reported Indonesia's foreign debt (ULN) in August 2023 to be 395.1 billion US dollars or a decrease compared to the position at the end of July 2023 which was 397.1 billion US dollars. Indonesia's external debt structure remains healthy, supported by the application of the precautionary principle in its management.

Indonesia's external debt in August 2023 remained under control, reflected in the ratio of Indonesia's external debt to gross domestic product (GDP) which fell to 29.1 percent, from 29.2 percent in the previous month, and was dominated by long-term external debt with a share reaching 87.4 percent. of total external debt.

The government's external debt position at the end of August 2023 was recorded at 191.6 billion US dollars. The government's external debt fell compared to the previous month's position of 193.2 billion US dollars, or on an annual basis growth slowed to 3.6 percent (yoy) from the previous period of 4.1 percent (yoy).

The development of external debt was influenced by the shift in placement of non-resident investors' funds in the domestic government securities (SBN) market in line with high volatility in global financial markets.