"The reserve assets were equivalent to the financing of 6.5 months of imports or 6.3 months of imports and payment of government external debt, and well above the international standard of reserve adequacy of three months of imports," Director at Communication Department, Bank Indonesia (BI), Junanto Herdiawan, said in a statement here on Friday.
Bank Indonesia considers that the official reserve assets position is able to support the external sector resilience and maintain macroeconomic and financial system sustainability.
The increase in foreign exchange reserves in November 2018 was mainly influenced by oil and gas foreign exchange receipts, the withdrawal of government external debt, and other foreign exchange receipts, which were greater than the reserve assets requirements for government external debt repayments.
Going forward, Bank Indonesia considers that official reserve assets remain adequate supported by confidence in stability and the upbeat outlook of the domestic economy, as well as the export performance that remains positive.
In addition, price pressures on volatile foods in November 2018 stemmed from shallots, rice, purebred chicken eggs, tomatoes, and carrots.
In contrast, red chilies, purebred chicken meat, melon, papaya, bird`s eye chilies, and cooking oil experienced price corrections.
Despite increasing from the previous period, inflationary pressures on administered prices (AP) were kept under control.
AP inflation was recorded at 0.52 percent (mtm) in November 2018, accelerating from 0.32 percent (mtm) the previous month.
AP edged upward due to rising airfares, as a result of increasing demand during the approaching yearend.
AP inflation was further exacerbated by the knock-on effect of higher special fuel prices in October 2018, coupled with rising prices of filtered and unfiltered clove-flavored cigarettes in November 2018.
Annually, AP posted 3.07 percent (yoy) inflation, up from 2.74 percent (yoy) the month earlier.
Reporting by Azis Kurmala
Editing by Andi Abdussalam