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Indonesia's foreign exchange reserves down to $133.1 billion

Jakarta Globe - November 7, 2023

Jayanty Nada Shofa, Jakarta – Bank Indonesia announced Tuesday that the country's foreign exchange reserves stood at $133.1 billion as of the end of Oct., down from $134.9 billion in the previous month.

The central bank attributed the decline in Indonesia's foreign reserves to payments of foreign debts and measures to stabilize the Rupiah exchange rate.

The current foreign exchange reserves are equal to spending for 6.1 months of imports. It is also equivalent to 5.9 months' worth of imports and foreign debt payments.

"This is still above the international rule of thumb that a country's reserve should be equivalent to 3 months' worth of imports," Nita A Muelgini, a director for the communications department at Bank Indonesia, said in a press statement.

The $133.1 billion worth of foreign reserves should be enough for the country to withstand external factors, according to Nita.

"Going forward, Bank Indonesia believes that the reserves remain sufficient, supported by a maintained economic outlook and stability. This is in line with our policy mix to keep the macroeconomic and financial system stable for sustained economic growth," Nita said.

Source: https://jakartaglobe.id/business/indonesias-foreign-exchange-reserves-down-to-1331-billio