Indonesia Maintains Its Macroeconomic Stability With Good Consumer Confidence

TEMPO.CO, Jakarta - Indonesia's macroeconomic stability is maintained with good consumption and adequate foreign exchange reserves, ANTARA news agency reported. Consumer confidence regarding current economic conditions and expectations for economic conditions has increased in the next six months.

"Macroeconomic stability is still maintained with good consumption, good consumer confidence, and adequate foreign exchange reserves," Bank Mandiri money market analyst Reny Eka Putri told ANTARA in Jakarta on Wednesday.

Based on the Bank Indonesia (BI) Consumer Survey in January 2024, increased consumer confidence was indicated by the strengthening of the Current Economic Conditions Index (CCI) and the Consumer Expectations Index (CEC), which amounted to 115.6 and 134.5, respectively.

Meanwhile, Indonesia's foreign exchange reserves, amounting to US$ 144 billion US dollars, were adequate at the end of February 2024.

The position of foreign exchange reserves is equivalent to financing 6.5 months of imports or 6.3 months of imports and servicing government external debt and is above the international adequacy standard of around three months of imports.

The foreign exchange reserves can support external sector resilience and maintain macroeconomic and financial system stability.

From the market side, Reny said the opportunity to attract foreign investment can continue by issuing new instruments with attractive rates, as Bank Indonesia currently does.

BI has issued Bank Indonesia Rupiah Securities (SRBI), Bank Indonesia Forex Securities (SVBI), and Bank Indonesia Forex Sukuk (SUVBI) instruments to deepen the money market.

As of February 20, 2024, the auction of SRBI, SVBI, and SUVBI reached IDR 391.82 trillion, US$ 1.89 billion, and US$ 265 million, respectively.

ANTARA

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