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FOREIGN RESERVE - JAKARTA. Indonesia's foreign exchange reserves (forex) experienced a decline in April 2024. According to Bank Indonesia (BI), the forex position for that period reached $136.2 billion, a decrease from the $140.4 billion recorded in March.
The Governor of Bank Indonesia, Perry Warjiyo, explained that the decrease in forex in April was due to BI's efforts to stabilize the rupiah exchange rate, which has recently been weakening.
"The (forex) decreases when there is an outflow and we are stabilizing the rupiah exchange rate. However, we assure you that the amount of forex will be more than sufficient," Perry stated in a press conference on recent economic developments on Wednesday (8/5).
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Nevertheless, Perry assured that with the influx of foreign capital into the domestic market in the first and second weeks of May 2024, amounting to Rp 22.84 trillion, and with the increasingly stable rupiah exchange rate, the forex reserves are expected to increase.
In addition, he mentioned that Indonesia's forex position is still significantly higher than the International Monetary Fund (IMF) standards.
"So there's no need to worry or feel insecure, it's perfectly normal," he added.
Previously, the Director of the Communication Department of Bank Indonesia, Fadjar Majardi, stated that the decrease in the forex position in April 2024 was influenced by the government's foreign debt payments and the need to stabilize the Rupiah exchange rate in line with the increasing uncertainty of the global financial market.
"The forex position is equivalent to financing 6.1 months of imports or 6.0 months of imports and government foreign debt payments, and is above the international adequacy standard of about 3 months of imports," Fadjar explained in his written statement on Wednesday (8/5).
Despite the decrease, BI believes that the forex is capable of supporting the resilience of the external sector and maintaining macroeconomic and financial system stability.
