“The decline in the position of foreign exchange reserves was partly influenced by the government’s foreign debt payments,” Head of the Communications Department at BI Erwin Haryono stated in Jakarta on Thursday.
Haryono remarked that the foreign exchange reserve position was equivalent to financing 6.5 months of imports or 6.3 months of imports and the payment of government foreign debt and was above the international adequacy standard of around three months of imports.
BI assessed that foreign exchange reserves are capable of supporting the resilience of the external sector and maintaining macroeconomic and financial system stability.
Going forward, BI views that foreign exchange reserves will remain adequate, supported by maintained economic stability and prospects, in line with the synergy of policy mix responses taken by the Indonesian central bank and the government in maintaining macroeconomic and financial system stability to support sustainable economic growth.
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Earlier, based on data from the Central Statistics Agency (BPS), Indonesia’s trade balance surplus had continued in January 2024 at US$2.02 billion, lower than the surplus in December 2023 of US$3.29 billion.
The continuing trade balance surplus in January 2024 comes mainly from the non-oil and gas trade balance surplus.
The non-oil and gas trade balance in January 2024 recorded a surplus of US$3.32 billion, in line with the continued strengthening of non-oil and gas exports that reached US$19.13 billion.
The positive performance of non-oil and gas exports was supported by strong exports of animal and vegetable fats and oils, iron and steel, and footwear.
Translator: Martha H, Azis Kurmala
Editor: Yuni Arisandy Sinaga
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