Indonesia's forex reserves soar to US$131.7 billion in June-end

Indonesia's forex reserves soar to US$131.7 billion in June-end

Logo of Bank Indonesia. Antara/ BI Documentation

Jakarta (ANTARA) - Bank Indonesia recorded Indonesia's foreign exchange reserves to reach US$131.7 billion at the end of June 2020, an increase from $130.5 billion during the corresponding period in May this year.

"The increase in foreign exchange reserves in June 2020 was mainly influenced by the issuance of the government's global Islamic bonds (sukuk)," BI Communication Department Head Onny Widjanarko noted in a statement here on Tuesday.

Widjanarko expounded that the current reserves level was equivalent to financing 8.4 months' worth of imports or 8.1 months of imports and payment of the government's foreign debt and was above the international adequacy standard of some three months of imports.

Bank Indonesia considers that the reserve assets position is able to support the external sector resilience and maintain macroeconomic and financial system stability.

Going forward, Bank Indonesia views that foreign exchange reserves would remain adequate, supported by stability and maintained economic prospects, coupled with various policy responses in encouraging economic recovery.

Meanwhile, the Consumer Price Index (CPI) inflation remained low in June 2020.

Low CPI inflation was recorded at 0.18 percent (mtm) in June 2020 despite rising from 0.07 percent (mtm) a month earlier.

Inflation in June was influenced by lower core inflation and administered prices, while inflationary pressures on volatile foods rose.

Annually, the CPI inflation in June 2020 stood at 1.96 percent (yoy), down from 2.19 percent (yoy) during the previous period.

Bank Indonesia will continue to consistently maintain price stability and bolster policy coordination with the central and local governments to maintain low and controlled inflation within the target corridor of three percent, give or take one percent, in 2020. Related news: Indonesia's forex reserves surge to US$127.9 billion in April 2020
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