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Indonesia’s forex reserves near record-high in December
The current reserves level was an increase of $2.3 billion from $133.6 billion in November and was estimated to be enough to cover 9.8 months of imports and payments of the government’s external debts.
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One hundred dollar notes are seen in this photo illustration.
(AFP/Getty Images/Brendan Smialowski)
I
ndonesia’s foreign exchange reserves reached its second-highest annual record in December 2020, rising to US$135.9 billion, driven by tax collection and the government’s foreign borrowing, Bank Indonesia (BI) announced on Friday.
The current reserves level was an increase of $2.3 billion from $133.6 billion in November and was estimated to be enough to cover 9.8 months of imports and payments of the government’s external debts, the central bank said. It was also above the international reserve adequacy standard of three months’ of imports.
“Bank Indonesia is of the view that the foreign exchange reserves are adequate, supported by stability and a positive outlook for the economy, in line with various policy responses to push for economic recovery,” the central bank said in a statement.
In August 2020, Indonesia recorded its highest forex reserves on record at $137 billion.
The government collected Rp 144.7 trillion ($10.4 billion) in income tax in December, raising the total figure to Rp 1.07 quadrillion throughout 2020. The figure is a 19.7 percent contraction from the previous year earlier as a result of slowing economic activity and the rollout of a large tax stimulus to respond to the coronavirus outbreak.
Meanwhile, the government borrowed Rp 1.19 quadrillion to cover a budget deficit of 6.09 percent last year as it ramped up spending to rescue an economy reeling from the pandemic.
The country suffered last year its first recession since the 1998 Asian financial crisis as the government struggled to contain the COVID-19 outbreak.
