The position of official reserve assets was also well above the international adequacy standard of three months’ imports.
Bank Indonesia believes the official reserve assets position was able to support the external sector resilience and maintain macroeconomic and financial system stability, Widjanarko said.
The increase in official reserve assets in October 2019 was mainly underpinned by the government’s global bond issuance, oil and gas foreign exchange receipts, as well as other foreign exchange receipts.
Moving forward, Bank Indonesia was of the view that the official reserve assets remain adequate, supported by stability and solid domestic economic prospects, Widjanarko noted.
Besides, the Retail Sales Survey in September 2019 remained positive, despite slowing down, as confirmed by weaker Real Sales Index (RSI) growth from 1.1 percent (y-o-y) in August 2019 to 0.7 percent (y-o-y) in the reporting period. The steady retail sales growth was positively supported by sales in the Parts and Accessory Groups, as well as Other Household Equipment Groups.
In October 2019, retailers expected sales to regain momentum, he said.
This was indicative of the IPR of October 2019 which is projected to grow by 2.9 percent (y-o-y).
The increase was driven by increased sales in the Parts and Accessory Groups, Information Equipment Groups and Communications, as well as the Food, Beverage and Tobacco Groups, Onny Widjanarko said.
The survey also indicated that likely price increases in the retail merchant level in the next three months. This is reflected in the upcoming three-month Price Expectations Index (PEI) of 153.1, higher compared to IEH in the previous month at 140.0. (INE)
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