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FOREIGN RESERVE - JAKARTA. The foreign exchange reserves position in January 2024 has shrunk. Bank Indonesia (BI) reported that the position of Indonesia's foreign exchange reserves for that period was recorded at US$ 145.1 billion, or down 0.87% compared to December 2023, which was US$ 146.38 billion.
The decline in the position of foreign exchange reserves was influenced by the maturity of the government's foreign debt payments.
The Chief Economist of Bank Central Asia (BCA) David Sumual stated that indeed, at the beginning to the middle of the year, there are usually many maturing debts that are paid, including the government's foreign maturing debts.
"Then around March or April there are dividend payments that also affect the need for foreign exchange," David told Kontan.co.id, Wednesday (7/2).
He mentioned that the government's foreign debt due in January 2024 was about US$ 1.68 billion.
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Meanwhile, David predicts that in the first semester of 2024, the position of Indonesia's foreign exchange reserves will experience a downward trend. This is influenced by the expectation of a decrease in the interest rate of the United States central bank The Fed which will shift in the middle of the year.
In addition, the decline in the position of foreign exchange reserves in the first semester is mostly influenced by external factors or global economic conditions.
With these developments, David projects that the exchange rate of the rupiah in the first semester of 2024 will be in the range of Rp 15,500 to Rp 16,000.
