Business

Forex reserves surpass
US$115b: BI

Indonesia’s foreign exchange reserves have surpassed the US$115 billion mark, the highest amount ever, Bank Indonesia (BI) says.

BI Governor Darmin Nasution announced Wednesday that forex reserves stood at US$115.8 billion as of May 6, which he said was "very sufficient to tackle speculation and risks of capital outflows".

This amount compares to the year-end foreign currency reserves in 2010 that amounted to $96.2 billion, representing a $19.6 billion increase (about 20 percent) in the first five months of 2011.

"Capital inflows came mixed in the form of short-term and long-term deposits. Overall, our current account remains healthy because of the huge surplus in the past two years. The current account normally books a high surplus, resulting in higher forex reserves," Darmin said in his opening remarks at the Indonesia Banking Expo 2011 at the Jakarta Convention Center (JCC).

On Tuesday the central bank announced a $7.7 billion surplus in the country's first quarter balance of payments (BOP), with a $1.9 billion surplus booked in the current account and $6.2 billion in its capital account surplus.

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