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Indonesia maintains upward trend in forex reserves
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International currency: An employee shows United States dollar banknotes at a money changer in Kwitang, Central Jakarta. (JP/Wendra Ajistyatama)
Indonesia’s foreign exchange (forex) reserves increased by US$500 million to $116.9 billion in January.
Bank Indonesia (BI) spokesman Tirta Segara said that revenues from tax, oil export dividends and the recent auction of government debt papers were higher than the sum needed to repay outstanding foreign currency-denominated government debt.
“The reserves are enough to cover 8.7 months’ worth of imports or 8.4 months’ worth of imports and foreign debt repayments,” Tirta said in a statement on Tuesday.
(Read also: Indonesia’s forex reserve increase in December fuels optimism)
The level exceeds the international standard for foreign reserves, which should cover at least three months' worth of imports
“Bank Indonesia believes that exports can support Indonesia's resilience to external pressure as well as supporting economic growth,” Tirta said.
The central bank earlier reported that Indonesia recorded a $10.5 billion year-on-year increase in its forex reserves in December, paving the way for optimism that bigger reserves will follow in the first quarter of this year on the back of the government’s tax amnesty.
BI said that the country’s forex reserves stood at $116.4 billion in December, growing by 10 percent compared to the December 2015 figure of $105.9 billion. (hwa)
