Indonesia’s Foreign Exchange Reserves Increase US$3.8 Billion in Just a Month

foreign exchange reserves

Indonesia’s foreign exchange reserves reached US$134.0 billion as of November 2022. This was confirmed by Bank Indonesia (BI).

That way, this position has increased compared to the position at the end of October 2022 which was recorded at US$130.2 billion or an increase of US$3.8 billion in one month.

Head of the BI Communication Department Erwin Haryono said that the increase in exchange reserves was influenced by an increase in tax revenues and oil and gas foreign exchange receipts.

“The increase in the position of exchange reserves in November 2022 was influenced, among others, by tax and service revenues, as well as oil and gas foreign exchange receipts,” he said in a press release, Wednesday (7/12/2022).

Erwin said the position of exchange reserves is equivalent to financing 5.9 months of imports or 5.8 months of imports and payment of the Government’s foreign debt. The exchange reserves as of November 2022 are also above the international adequacy standard of around 3 months of imports.

“BI assesses that these exchange reserves can support external sector resilience and maintain macroeconomic and financial system stability,” he said.

He added, going forward, BI views that exchange reserves will remain adequate, supported by maintained economic stability and prospects, along with various policy responses in maintaining macroeconomic and financial system stability to support the process of national economic recovery.

For information, exchange reserves are assets held by central banks and monetary authorities, usually denominated in different reserve currencies.

The currency used in exchange reserves is usually the currency that applies internationally, aka recognized in many countries, such as US dollars, euros, yen, yuan, and pounds.