Indonesia's Foreign Exchange Reserves Hit Record High of US$146.9 Billion in September

Bank Indonesia (BI) reported that Indonesia's foreign exchange reserves reached US$146.9 billion at the end of September 2021. This figure represents a 1.42% increase compared to the previous month's US$144.8 billion and also marks a record high.

The foreign exchange reserves are equivalent to 8.9 months of import cover or 8.6 months of import and government foreign debt payments. Furthermore, Indonesia's foreign exchange reserves are above the international adequacy standard of approximately 3 months of import cover.

The increase in foreign exchange reserves was influenced by tax and service receipts. In addition, the government's drawing down of foreign debt also contributed to the increase in foreign exchange reserves last month.

BI assesses that this increase in foreign exchange reserves supports the resilience of the external sector. Furthermore, these reserves also help maintain macroeconomic and financial system stability.

Moreover, BI views the foreign exchange reserves as remaining adequate in the future. This will also be supported by sustained economic stability and prospects, along with various policy responses to boost economic recovery.