Bank Indonesia Reports Increase in Foreign Exchange Reserves to $140.3 Billion in February 2023

foreign exchange reserves

Bank Indonesia (BI) has announced that Indonesia’s foreign exchange reserves reached US$140.3 billion at the end of February 2023, an increase from US$139.4 billion in January 2023.

Erwin Haryono, the Head of Communications and Executive Director of BI, explained that the increase in foreign exchange reserves in February 2023 was due in part to tax revenue and the withdrawal of foreign government loans.

“This foreign exchange reserve position is equivalent to financing for 6.2 months of imports, or 6 months of imports and foreign government debt payments, and is above the international adequacy standard of around 3 months of imports,” he said in an official statement on Tuesday, March 7th.

BI believes that these foreign exchange reserves are capable of supporting the resilience of the external sector and maintaining macroeconomic and financial system stability.

Looking ahead, BI believes that foreign exchange reserves will remain adequate, supported by the stability and prospects of the economy, as well as various policy responses.

“These policy responses are aimed at maintaining macroeconomic and financial system stability to support the national economic recovery process,” he added.

As previously reported, Indonesia’s foreign exchange reserves have increased for three consecutive months. At the beginning of January 2023, BI reported that the reserves had reached US$139.4 billion.

Unfortunately, this increase over the past three months did not elicit a positive response from market players. This is due to the fact that the main driver of this increase was government debt or the issuance of global bonds.

“The increase in reserve positions in January 2023 was due, among other things, to the issuance of global bonds by the government, as well as tax and service revenue,” BI said in an official statement on Monday, February 13th.