Indonesia's foreign exchange reserves shrink by Rp 260 trillion after eight consecutive declines.

Bank Indonesia (BI) reported that its foreign exchange reserves decreased by US$3.5 billion (2.6%) in September 2018 to US$114.8 billion, down from the previous month. This is the largest decrease in the past seven months and the eighth decline this year.

The central bank's efforts to maintain the rupiah exchange rate and prevent excessive fluctuations, as well as payments for maturing government debt, have drawn down foreign exchange reserves. Over the past eight months, BI's foreign exchange reserves have shrunk by US$17.13 billion, or approximately Rp 260 trillion at an exchange rate of Rp 15,200 per US dollar.

Despite the decrease, BI's foreign exchange reserves remain relatively high, sufficient to cover 6.5 months of imports (equivalent to 6.3 months of imports and payments for maturing government foreign debt). This figure exceeds the international adequacy standard of approximately three months of imports.