Bank Indonesia (BI) reported the position of foreign exchange reserves drop to US$137.1 billion at the end of March 2021 - Photo: Special

JAKARTA (TheInsiderStories) – Bank Indonesia (BI) reported the position of foreign exchange (forex) reserves drop to US$137.1 billion at the end of March 2021. The amount has decreased compared to the previous month at $138.8 billion.

The statement wrote, the decline in forex reserves was mainly influenced by the payment of government external debt according to the payment maturity pattern. The central bank claimed, the position of forex reserves is equivalent to financing 10.1 months of imports or 9.7 months of imports and servicing of government external debt, and is above the international adequacy standard of around 3 months of imports.

The Bank assesses that the forex reserves are capable of supporting external sector resilience and maintaining macroeconomic and financial system stability. Going forward, BI considers that the reserves will remain adequate, supported by stability and a maintained economic outlook, in line with various policy responses to promote economic recovery.

On Tuesday, International Monetary Fund (IMF) has rated the emerging countries economy like Indonesia underperform. The Fund lowered its growth projection to the Southeast Asia largest economy from 4.8 percent in January to 4.3 percent in this year.

Earlier, minister of finance, Sri Mulyani Indrawati, hope that the government’ efforts to break the spread of the corona virus through 3T (Testing, Tracing, Treatment) and the progress of vaccination will be able to accelerate the economic recovery in the second quarter of 2021.

“What we have up to now is the government’ response since last year, especially through fiscal policy. In my opinion, what we call a package of recovery programs and overcoming the COVID-19 problem gave us relatively good results,” she explained online at the US ASEAN Business Council Courtesy Meeting on March 31.

In 2020, Indonesia’ economic growth contracted 2.07 percent and the fiscal deficit of 6.09 percent of gross domestic products (GDP). Now, she claimed, the country’ economy showed signs of improvement as Indonesia commenced its nationwide vaccination program. However, there were a number of economic indicators with varying conditions.

The finance minister predicts that household consumption will continue to strengthen along with the government’ social protection programs for the low-income demography. The minister believed the state budget will continue as a booster for the national economic recovery.

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