Indonesia’s foreign exchange reserves declined to USD 144.9 billion in May 2026 from USD 146.2 billion in April, reaching their lowest level since June 2024. The decrease was primarily driven by government external debt repayments and Bank Indonesia’s foreign exchange market interventions to stabilize the rupiah amid elevated uncertainty in global financial markets and a seasonal increase in domestic foreign currency demand.
Despite the decline, the reserve position remained solid, equivalent to 5.6 months of imports, or 5.5 months of imports and government external debt servicing. This level is well above the commonly used international adequacy benchmark of around three months of imports.
Looking ahead, Bank Indonesia expects Indonesia’s external resilience to remain strong, supported by ample foreign exchange reserves and continued capital inflows. These inflows are underpinned by positive investor sentiment toward Indonesia’s economic outlook and the sustained attractiveness of domestic financial assets.
