Indonesia’s foreign exchange reserve rose to US$123.8 billion in June from $120.3 billion recorded in the previous month, Bank Indonesia (BI) announced.
BI spokesman Onny Widjanarko said in a statement on Friday that the increase had been driven by the foreign exchange from the oil and gas sector as well as an increase in the government’s external debt.
The Finance Ministry issued a $750 million bond with a 10-year maturity and 750 million-euro ($846 million) bond with a seven-year maturity last month as it utilized the positive momentum generated from a recent rating upgrade by Standards & Poor’s.
BI said the latest foreign exchange reserve level would be able to finance 7.1 months of imports or 6.8 months of imports and payment of the government’s external debt, which was above the international adequacy standard of around three months of imports.
“BI believes the foreign exchange reserve would be able to support the resiliency of the external sector while also maintaining the macroeconomic and financial system stability,” Onny said in the statement.
Going forward, Onny said the foreign exchange reserve would be able to withstand external shocks as the outlook for Indonesia’s economy and exports remains positive. (bbn)