Indonesia’s Foreign Exchange Reserve’s Continue to Decline
Indonesia’s foreign exchange reserves fell USD $2.8 billion to USD $108.0 billion at the end of June 2015 (from USD $110.8 billion one month earlier). This fall was caused by foreign debt repayment and the use of foreign exchange to stabilize the rupiah exchange rate. Due to external pressures (particularly looming further monetary tightening in the USA this year and the possible Greek exit from the euro), the rupiah is the worst performing Asian currency tracked by Bloomberg so far in 2015, weakening about 7 percent against the US dollar.
The central bank of Indonesia (Bank Indonesia) stated that the country’s foreign exchange reserves the end of June 2015 can adequately cover seven months of imports or 6.8 months of imports and servicing of public external debt repayment. This is well above current international standards of reserves adequacy at three months of imports.
At the end of 2014, Indonesia’s foreign exchange (forex) reserves stood at USD $111.9 billion.
Indonesia's Foreign Exchange Reserves 2008-2015:
¹ in billion US dollar
² at end-June 2015
Source: Bank Indonesia