Indonesia: FX reserves eased further in June – UOB

Economist at UOB Group Enrico Tanuwidjaja and Junior Economist Agus Santoso review the latest FX reserves figures in Indonesia.

Key Takeaways

Indonesia’s foreign exchange reserves eased by USD1.8bn to USD137.5bn in Jun 2023. 

The latest reserve level was equivalent to financing 6.1 months of imports or 6 months’ worth of imports and servicing the government’s external debt, well above the international adequacy standard of 3 months of imports. 

BI will increase the frequency and tenor of Foreign Currency Term Deposits (TD Valas) with more competitive rates as an extra policy to anchor rupiah stability. Since its first auction in Mar, BI attracted more than USD1bn of TD DHE with total outstanding by around USD475.8mn in Jul.