Jakarta, Indonesia Sentinel — Bank Indonesia (BI) announced that Indonesia foreign exchange reserves stood at $150.2 billion at the end of November 2024, marking a $1 billion decline from the $151.2 billion reported in October.
The reserves are equivalent to financing 6.5 months of imports or 6.3 months when combined with servicing the government’s external debt. This level is well above the international adequacy standard of three months’ worth of imports, according to BI’s press release on Friday, December 6, 2024.
Impact of External Debt Payments
The slight reduction in reserves was primarily attributed to the government’s external debt payments. Despite the decrease, BI expressed confidence in the adequacy of the reserves, emphasizing their role in bolstering external sector resilience and maintaining macroeconomic and financial system stability.
“Bank Indonesia assesses that the current foreign exchange reserves can adequately support external sector resilience and maintain stability in macroeconomic and financial systems,” the press release stated.
Positive Export Prospects
BI remains optimistic about the future of Indonesia’s external sector. Strong export performance and anticipated surpluses in the capital and financial account are expected to underpin this resilience. These factors are driven by favorable investor sentiment toward Indonesia’s economic prospects and attractive returns on investment in the country.
“Positive perceptions from investors and robust economic fundamentals contribute to maintaining external resilience,” the central bank noted.
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Strengthening External Resilience
Bank Indonesia highlighted its ongoing efforts to collaborate with the government to reinforce external stability. These efforts aim to safeguard economic stability and support sustainable economic growth.
“The synergy between Bank Indonesia and the government will continue to strengthen external resilience and maintain economic stability for sustainable growth,” the central bank affirmed.
(Becky)
