The decline in foreign exchange reserves was due in part to the repayment of the government's foreign debts and the need for dollars to stabilize the rupiah's exchange rate amid the high uncertainty about the global financial market.
The foreign exchange reserves of US$130.8 billion will be sufficient to finance imports for 5.9 months of imports and the government's foreign debt repayments for 5.7 months, BI Executive Director and Chief of the Communication Department Erwin Haryono noted in a statement released on Friday.
In addition, the foreign exchange reserves exceed the international adequacy standard of imports for three months.
BI believes that foreign exchange reserves were able to support the external sector's resilience and maintain macroeconomic and financial system stability.
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Looking ahead, the central bank noted that the foreign exchange reserves will remain sufficient, fueled by well-controlled economic stability and prospects in line with various responses to the policy to maintain macroeconomic and financial system stability to support the national economic recovery.
BI reported earlier that Indonesia's foreign debts had reached US$400.4 billion at the end of July 2022, as compared to US$403.6 billion a month earlier.
The foreign debts declined by 4.1 percent year-on-year in July 2022 as compared to 3.2 percent the month before.
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Translator: Agatha Olivia Vi, Suharto
Editor: Rahmad Nasution
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