Indonesia forex reserves increase in April to $123.2B

JAKARTA (TheInsiderStories) – Indonesia’s official foreign exchange reserves have increased to US$123.2 billion in April 2017, from previous month of US$121.8 billion, partly driven by improved external trade, the central bank, Bank Indonesia data shows.

Executive Director of Communication Department of Bank Indonesia (BI) Tirta Segara said the increase of foreign exchange reserves was primarily attributable to foreign exchange receipts, among other from tax revenues and government oil  and gas export proceeds, as well as the auction of Bank Indonesia’s foreign exchange bills.

“The receipts surpassed the use of foreign exchange for repayments of government external debt and Bank Indonesia foreign exchange bills matured during the period,” he said in a press statement.

The foreign exchange reserves asset position at the end-April 2017 was adequately to cover 8.9 months of imports or 8.6 months of imports and servicing of government external debt repayments, well above the international standards of reserves adequacy at 3 months of imports.

“Bank Indonesia considers the official reserve assets are able to strengthen the resilience of the external sector and maintain the sustainability of Indonesian economic growth,” he added.

Economist from the Center of Reform on Economics (CORE) Indonesia M. Faisal said, the increase of reserve assets was in line with the improvement of export-import performance. In the first quarter of 2017, export grew 8 percent, driven by the increasing of commodity prices.

In addition, he said the increasing number of foreign tourists also contributed significantly to the rise of reserve assets. He expected the increasing of reserve assets will continues as long as the export and rupiah exchange rate performed well. (RF)