JAKARTA (TheInsiderStories) — Bank Indonesia (BI) reported foreign exchange (forex) reserve reached US$120.7 billion in December. The figure is not only higher than November’ nominal a $117.2 billion, but also hits seven months record.
The forex reserve increase mostly supported by oil and gas foreign exchange receipts, global bonds issuance and withdrawal of government foreign loans. In 2018, Indonesia issued Rp358.4 trillion ($24.71 billion) government bonds.
“Our forex reserve is equal to 6.7 months import funding or 6.5 months import and government foreign debt payment. It is also above international standard of adequacy for around 3 months import,” said BI’ Governor Perry Warjiyo, in a written statement today (01/08).
He also considered that the forex reserve could support resilience of external sector and maintaining macroeconomic and financial system stability.
Indonesian economic is very prone to global sentiment. Last year, Rupiah had fallen to its worst since 1998 monetary crisis, because of US Dollar strengthening amid its stronger economy.
The high forex reserve is recognised sufficient to stabilise the local currency. Currently, Rupiah position is the strongest since June 2018.
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