Indonesia’ foreign exchange reserves slightly up to US$137.0 billion in August from previous month stood at $135.1 billion, Bank Indonesia reported today - Photo: Privacy

JAKARTA (TheInsiderStories) – Indonesia’ foreign exchange (forex) reserves slightly up to US$137.0 billion in August from previous month stood at $135.1 billion, Bank Indonesia (BI) reported today (09/07). The position was equivalent to 9.4 months of imports and servicing government’ external debt and well above the international adequacy standard of three months of imports.

The central bank considers, that the forex reserve assets position was able to support the external sector resilience and maintain macroeconomic and financial system stability. The increased, said the Bank, was influenced by government foreign loan withdrawal, also oil and gas export proceeds.

Observing Indonesian economic conditions, the policymakers said will periodically evaluates the development the stability of Rupiah. On Monday, the local currency is closed at 14,720 a US dollar from last friday.

Data showed on Sept. 3, the 10-year state bond’ yield increased to 6.91 percent, US Dollar index strengthened to the level of 92.74, yield of US treasury note for 10 years fell to a level of 0.635 percent, and credit default swaps premiums for five years dropped to 85.72 basis points as of Sept. 3 from 93.41 basis points as of August 28.

BI also reported, based on the Price Monitoring Survey in the first week of September, the country is estimated to have deflation of 0.01 percent month-to-month. With these developments, the inflation forecast during January to September is 0.92 percent and on an annual basis at 1.46 percent.

On Monthly basis, the main contributors to deflation were broiler chicken at -0.05 percent, red onions at -0.03 percent, red chilies and eggs of broilers each at -0.02 percent, cayenne pepper, orange, and ornamental gold each amounting to -0.01 percent. While, the commodities contributing to inflation were garlic and cooking oil each at 0.01 percent.

Bank Indonesia said will continue to strengthen coordination with the government and related authorities to closely monitor the dynamics of the spread of COVID-19 and its impact on the Indonesian economy from time to time, as well as further policy coordination steps that need to be taken to maintain macroeconomic and financial system stability, as well as sustain Indonesia’s economic growth remains good and resilient.

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