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

Key Takeaways

“Indonesia’s foreign exchange reserves fell to USD132.2bn in July 2022, the lowest since June 2020 and a decrease of USD4.2bn from a 3-month high of USD136.4bn the previous month.”

“The latest reserve level was equivalent to finance 6.2 months of import or 6.1 months of imports and servicing the government’s external debt, well above the international adequacy standard of 3 months of imports.”

“Bank Indonesia (BI) maintains their view that the official reserve assets will remain adequate, supported by the stability and solid domestic economic outlook in line with several responsive policies to support long-term economic recovery.”