Indonesia's Foreign Exchange Reserves Fell to US$135.7 Billion in April 2022

Bank Indonesia (BI) reported that Indonesia's foreign exchange reserves decreased by US$3.4 billion in April 2022 to US$135.7 billion. In March, reserves stood at US$139.1 billion.

Since the beginning of 2022, the decline in foreign exchange reserves has decreased over the past two months. In February, BI recorded foreign exchange reserves reaching US$141.4 billion.

"The decrease in foreign exchange reserves in April 2022 was influenced, among other things, by the need for government foreign debt payments and anticipation of foreign exchange liquidity needs in line with increasing economic activity," said Erwin Haryono, Head of the Bank Indonesia Communication Department (Friday, May 13, 2022).

Nevertheless, Erwin stated that Indonesia's foreign exchange reserves remain high. These reserves are equivalent to 6.9 months of import financing or 6.7 months of import and government foreign debt payments.

Foreign exchange reserves are also above the international adequacy standard of around 3 months of imports. The central bank assesses that these reserves are able to support the resilience of the external sector and maintain macroeconomic and financial system stability.

"Looking ahead, Bank Indonesia views foreign exchange reserves as remaining adequate, supported by maintained economic stability and prospects, along with various policy responses to encourage economic recovery," he said.