Indonesia’s foreign exchange reserves edged up to USD 146.8 billion in October from USD 146.3 billion in September, marking their highest level since March. The increase was primarily driven by government external loan disbursements as well as tax and service revenue inflows. These gains were partly offset by repayments of maturing government foreign debt and by Bank Indonesia’s measures to stabilize the rupiah amid ongoing uncertainty in global financial markets.
At this level, reserve assets were sufficient to cover 5.3 months of imports, or 5.2 months of imports and government external debt servicing combined—well above the commonly used adequacy benchmark of about three months of imports. Looking ahead, Bank Indonesia expects the external sector to remain resilient, underpinned by ample foreign exchange reserves and continued foreign capital inflows.
