Heaptalk, Jakarta — Bank Indonesia recorded the country’s foreign exchange reserves reached USD140.2 billion, approximately Rp2,285 trillion, at the end of June 2024, an increase compared to the position at the end of May 2024, which was attained US$139.0 billion, equal to Rp2,265 trillion.
The position of foreign exchange reserves at the end of June 2024 is equivalent to 6.3 or 6.1 months of imports and government external debt payments. This estimation exceeds the international adequacy standard of about three months of imports. Bank Indonesia assesses that the foreign exchange reserves can support external sector resilience and maintain macroeconomic and financial system stability, which is expected to back external sector resilience.
“Tax and service revenues and the withdrawal of government foreign loans influenced the increase in foreign exchange reserves. The need for stability in the rupiah exchange rate aligned with the continuous high uncertainty in global financial markets,” Assistant Governor of BI Erwin Haryono said.
From now on, Bank Indonesia reckons positive sentiment that foreign exchange reserves will remain adequate to support external sector resilience. Export prospects remain positive, and the capital and financial transaction balance is expected to continue to record a surplus in line with investors’ positive perceptions of the national economic prospects and attractive investment returns.
For this reason, Bank Indonesia continues to strengthen synergy with the government in enhancing external resilience and maintaining economic stability to achieve a sustainable Indonesian economy. As is known, Indonesia’s economy reportedly grew by 5.11% in Q1 this year, supported by domestic economic activities, covering household consumption, Eid momentum, and the General Election 2024.
As the main contributor to the country’s economy, household consumption increased by 4.91%, and consumption of Non-Profit Institutions Serving households (LNPRT) bumped at 24.29%, driven by general election activities and the Eid holiday. Besides, Indonesia’s government sector consumption improved positively by 19.90%, driven by general election and personnel spending.
