Indonesia's foreign exchange reserves fell for three consecutive months, reaching US$135.6 billion in May 2022.

Indonesia's foreign exchange reserves stood at US$135.6 billion in May 2022. According to Bank Indonesia (BI), this figure is lower than the previous month's US$135.7 billion.

This decline in foreign exchange reserves has occurred for three consecutive months. A previous decrease occurred in March, falling to US$139.1 billion from US$141.4 billion the previous month.

Reserves fell again in April to US$135.7 billion. However, the May decline was significantly smaller than the previous month's.

BI assesses that the May foreign exchange reserve position remains high and relatively stable. The position is influenced by foreign exchange receipts from oil and gas, taxes, and services, as well as government foreign debt payments.

BI notes that the foreign exchange reserves are equivalent to 6.8 months of import cover or 6.6 months of import and government foreign debt payments. Reserves also exceed the international adequacy standard of approximately 3 months of import cover.

The central bank also believes that these reserves support external sector resilience 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 boost economic recovery," said Erwin Haryono, Executive Director and Head of BI's Communication Department, in a written statement on Wednesday (June 8, 2022).