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Foreign Exchange Reserves Down Due to Foreign Debt Payment: Bank Indonesia

8 June 2021 14:54 WIB

Logo or illustration of Bank Indonesia. TEMPO/Panca Syurkani

TEMPO.CO, Jakarta - Bank Indonesia (BI) reported Tuesday, June 8, that Indonesia’s foreign exchange reserves at the end of May-amounted to US$136.4 billion, which is a drop compared to the end of April of US$138.8 billion. 

Despite this drop, the BI head of the communication department, Erwin Haryono, said this number is comparable to the financing of 9.1-month imports and payment of foreign debt. 

May’s foreign exchange reserves were also above the international adequacy standard of 3-month import. He explained that the drop was due to the government paying off foreign debts. 

The central bank claimed the current reserve is sufficient, which is supported by stability and sustained economic prospects, coinciding with a number of policies in order to drive an economic recovery. 

Bank Indonesia views that the foreign exchange reserve is able to support external sector resilience and maintain macroeconomic stability and the financial system,” said Haryono on June 8.

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