Indonesia's Foreign Exchange Reserves Slightly Decreased in October 2021 Due to Debt Payments

Bank Indonesia (BI) reported that Indonesia's foreign exchange reserves reached US$145.5 billion in October 2021. This figure is down 0.95% compared to the previous month, which recorded a record high of US$146.9 billion.

The decrease in foreign exchange reserves was influenced by government foreign debt payments. However, BI assessed that Indonesia's foreign exchange reserves at the end of October 2021 remained high.

The foreign exchange reserves position in October 2021 was equivalent to 8.5 months of import cover or 8.3 months of import cover and government foreign debt payments. Furthermore, Indonesia's foreign exchange reserves were above the international adequacy standard of around 3 months of import cover.

BI assessed that the increase in foreign exchange reserves supported the resilience of the external sector. In addition, these reserves helped maintain macroeconomic and financial system stability.

The central bank views 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.