Forex reserves swell to $111.2b in August

JAKARTA. The central bank recorded Indonesia’s foreign exchange (forex) reserves topping US$111.2 billion in August, an increase from $110.5 billion in the previous month.

Bank Indonesia (BI) communications department executive director Tirta Segara said the increase in forex reserves was primarily derived from proceeds from the government’s oil and gas exports, which exceeded its spending for overseas debt.

The position of the forex reserves was sufficient to cover 6.5 months of imports or 6.3 months of imports and the government’s foreign debts — well above the standard international requirement of about three months of imports, according to Tirta.

“Bank Indonesia sees the increase in forex reserves having a positive impact toward efforts to strengthen the resistance of [the country’s] external account and maintain the sustainability of Indonesia’s economic growth in the future,” Tirta said in a press statement published on Friday.