Indonesia's forex reserve swelled to US$123.8billion in June: BI

Indonesia's forex reserve swelled to US$123.8billion in June: BI

(Illustration) - A teller stacking rupiah and US dollar currencies at the Bank Mandiri Cash Center in Jakarta, Wednesday, March 7, 2018. (ANTARA/Sigid Kurniawan)

Jakarta (ANTARA) - Indonesia’s central bank, Bank Indonesia (BI), reported that Indonesia's official reserve assets rose by US$3.5 billion to $123.8 billion at June-end 2019, caused by withdrawal of the government's external debt, among other factors.

BI’s Executive Director Communication Department Onny Widjanarko noted in his statement here on Friday that apart from foreign debt withdrawal, the increase was also driven by the foreign exchange from the oil and gas sector and other foreign exchange receipts.

“The central bank views that official reserve assets remained adequate, backed by confidence in stability and upbeat outlook of the domestic economy,” he stated.

As of the end of June 2019, Indonesia’s official reserve asset position was equivalent to finance 7.1 months of imports or 6.8 months of imports and payment of the government's external debt, which was still above the international adequacy standard of three months of imports.

“With this condition, BI viewed that official reserve assets are able to support resiliency of the external sector while also maintaining macroeconomic and financial system stability,” he noted.  

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