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Forex reserves drop by $1.8B after gov't debt repayment

Jakarta Globe - July 9, 2023

Nasori, Jakarta – Indonesia's foreign exchange reserves have experienced a slight decrease of $1.8 billion, reaching $137.5 billion in June compared to the previous month. This drop was partly caused by the government's debt repayment.

Bank Indonesia spokesman Erwin Haryono said the current reserves are sufficient to cover six months' worth of imports and monthly debt payments.

According to data from the central bank, the government's overseas debts totaled $194.1 billion as of April.

The total amount of government debt increased by 1.8 percent year-on-year in April, following the issuance of state bonds in the domestic market.

Data from the Finance Ministry indicates that government debt stood at Rp 7,787.51 trillion in May, equivalent to 37.85 percent of the country's gross domestic product (GDP).

The law on state finance sets a cap on government debt at 60 percent of the GDP.

Source: https://jakartaglobe.id/business/forex-reserves-drop-by-18b-after-govt-debt-repaymen