Indonesia’s foreign exchange reserves rose to USD 146.5 billion in August, up from USD 145.3 billion in July, reaching their highest level since March. The increase was mainly driven by higher tax and services revenues, as well as government drawdowns of external loans, which more than offset external debt repayments and Bank Indonesia’s Rupiah stabilisation efforts amid ongoing uncertainty in global financial markets.
The reserve position remained strong, sufficient to cover 5.4 months of imports, or 5.3 months of imports plus government external debt servicing—well above the internationally accepted adequacy benchmark of around three months of imports. According to Bank Indonesia, this reserve buffer is adequate to reinforce external sector resilience and help maintain macroeconomic and financial stability.
Looking ahead, Bank Indonesia expects external resilience to stay well supported by ample foreign exchange reserves and sustained foreign capital inflows, underpinned by positive investor sentiment toward Indonesia’s economic prospects and relatively attractive returns.
