The nation’s forex reserves rose by US$1.9 billion to $137 billion, surpassing the previous record of $135.1 billion a month earlier. The latest reserves position would allow for the payment of foreign debt and nine months of imports.

“Bank Indonesia views the forex reserves level as adequate to support external stability and maintain macroeconomic and financial system stability,” the central bank said in a statement.

“The forex reserves level will remain adequate, supported by stability and a positive outlook for the economy, in line with various policy responses to push for economic recovery.”

The government faces a daunting task as it looks to raise Rp 900.4 trillion from the issuance of sovereign debt papers in the July-December period to cover for its budget deficit of 6.34 percent of gross domestic product as tax collection and proceeds from nontax income fell amid slowing economic activity due to the coronavirus pandemic.

It previously planned to raise $5.5 billion in loans from multilateral organizations.

The government has collected Rp 601.9 trillion in tax income as of July, down 14.7 percent year-on-year (yoy) and around 50 percent from this year’s target. Meanwhile, nontax income from oil and gas amounted to Rp 44 trillion as of July, down 34.8 percent yoy.

Popular

Navy intercepts eight Indonesians, eight Bangladeshis arriving from Malaysia

Malaysia must not breathe Indonesia’s governance failure

Unchecked businesses blamed for raging wildfires