"The drop was caused by increasing expenditure for paying government foreign debt and stabilizing the rupiah exchange rate to maintain macro-economic and financial system tability," Bank Indonesias Communications Department Executive Director Tirta Segara said here on Friday.
He said an increase in the foreign exchange income from the issuance of Euro Bond had been able to withhold further decline.
He said the reserve could finance 7.0 months of imports or 6.8 months of imports and payment of government foreign debt and was still above the international adequacy standard which is for around three months of imports.
"Bank Indonesia hold that the reserve could support external sector resilience and maintain sustainability of Indonesias economic growth in the future," he said.
At the end of June Indonesias foreign exchange reserve was recorded at US$108 billion down by US$2.8 billion from US$110.8 billion at the end of May.(*)
Editor: Heru Purwanto
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