JAKARTA. Capital inflows increased Indonesia’s foreign exchange reserves to US$123.1 billion in April, the highest level since at least 2015.
The increase in April was mainly supported by foreign exchange earnings, including from the repatriated funds in the government’s tax amnesty, oil and gas export proceeds as well as Bank Indonesia’s (BI) auction of foreign exchange securities (SBBI), the central bank said in a statement on Monday.
“BI considers that the foreign reserves are able to support the country’s external side and maintain sustainability of economic growth going forward,” it wrote.
The amount of foreign reserves in April was sufficient to pay for about nine months of imports and repay the government’s foreign debts and BI’s matured exchange securities.
Indonesia has continued to see rising capital inflows since earlier this year. Capital inflows reached roughly Rp 96 trillion (US$7.2 billion) as of April 21, higher than Rp 76 trillion seen in the same period last year, BI Governor Agus Martowardojo said recently.
The inflows helped the rupiah appreciate against the greenback by about 1.1 percent year-to-date to 13,326 per US dollar in the first quarter of this year, BI data show. (Grace D. Amianti)
Source : The Jakarta Post