JAKARTA, 8 June (JDN.id) – Indonesia’s foreign exchange reserves declined $2 billion in May, amid the central bank’s effort to stabilize the rupiah currency and a significant amount of foreign debt repayment by the government.
Bank Indonesia said in a statement on Friday the position of Indonesia’s foreign exchange reserves stood at $122.9 billion of end of May. That compares to $124.9 billion at the end of April.
This level is enough to cover Indonesia’s imports for 7.4 months, and if added with the amount of money the government has to spend on this year’s maturing foreign debts, then it would be enough for 7.2 months.
“The decline in foreign exchange reserves, [as of end of] May 2018 was caused by overseas debt repayment by the government and amid efforts to stabilize the rupiah foreign exchange during the high volatility time in the global financial markets,” Agusman, the central bank’s spokesperson said in the statement.
“Bank Indonesia sees the level of foreign exchange reserves remain adequate,” the bank said, adding it remains upbeat over the nation’s overall stability, improvement of its domestic economy as well as the prospects of improving exports.