Update COVID-19 in Indonesia: 1,298,608 confirmed infections, 35,014 deaths (23 February 2021)
23 February 2021 (closed)
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The central bank of Indonesia (Bank Indonesia) announced that its foreign exchanges reserves had risen to USD $107.0 billion by the end of May 2014, up from USD $105.6 billion at the end of the previous month. This increase primarily stemmed from government oil and gas export earnings as well as an influx of foreign portfolio capital into Southeast Asia's largest economy, which reflects the positive perception of international investors with regard to the economic fundamentals of Indonesia.
Indonesia's foreign exchange reserves in May 2014 are equivalent to 6.2 months of imports or 6.0 months of imports and servicing external debt, which is well above the international standard of around three months of imports. Bank Indonesia considers the burgeoning position of foreign exchange reserves conducive to greater external sector resilience and for maintaining sustainable economic growth in Indonesia.
Deputy Governor of Bank Indonesia Perry Warjiyo said that - in order to curb the country's current account deficit further - Indonesia needs structural reformation. With the current account balance under control, global investors will be more willing to invest in Indonesia. Structural reforms include infrastructure development (thus increasing inter- and intra island connectivity), and a deepening of the country's financial markets (through the issuance of more state bonds, notes and more initial public offerings on the Indonesia Stock Exchange).
Indonesia's Foreign Exchange Reserves 2008-2014:
¹ in billion US dollar
² at end May 2014
Source: Bank Indonesia