Indonesian Foreign Exchange Reserves Rise to US$ 140.2 Billion by End of June

TEMPO.CO, Jakarta - Bank Indonesia (BI), reported that Indonesia's foreign exchange reserves stood at US$140.2 billion at the end of June 2024, marking an increase from the reported US$139 billion at the end of May 2024.

Erwin Haryono, Head of BI's Communication Department, attributed the increase in reserves at the end of June to several factors. "It was influenced by tax and service revenues as well as the drawdown of government foreign loans, amid the need to stabilize the rupiah exchange rate in line with ongoing high uncertainty in global financial markets," Erwin said in an official statement on Friday, July 5, 2024.

As of the end of June 2024, Indonesia's foreign exchange reserves were equivalent to financing 6.3 months of imports or 6.1 months of imports and government external debt payments. Moreover, the reserves also exceeded the international adequacy standard of around 3 months of imports.

BI assessed that these reserves are capable of supporting external sector resilience and maintaining macroeconomic stability and financial system stability. According to BI, export prospects are expected to remain positive, and the capital and financial transaction balance is also predicted to continue recording surpluses. "Aligned with investors' positive perceptions of the national economic outlook and attractive investment returns, this supports the sustained resilience of the external sector."

Erwin further stated that BI will continue to strengthen synergy with the government to bolster external resilience. "Thus, we can maintain economic stability to support sustainable economic growth," he said.

ANNISA FEBIOLA

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