Enrico Tanuwidjaja, Economist at UOB Group, reviews the latest FX reserves figures in Indonesia.

Key Takeaways

“Indonesia’s foreign exchange reserves increased by almost USD1bn to USD140.3bn in Feb 2023.”

“The latest reserve level was equivalent to finance 6.2 months of import or 6 months’ worth of imports and servicing the government’s external debt, well above the international adequacy standard of 3 months of imports.”

“Tax payment revenue and government external debt drawdown accounted for last month’s increase in the reserves. BI maintains the view that the official reserve assets will remain adequate to anchor stability and safeguard the Indonesian economy.”