JAKARTA – Indonesia’s foreign exchange reserves declined in December 2021 to USD 144.9 billion from USD 145.9 billion in November 2021. Despite the decrease, the reserves are deemed sufficient to fund eight months of imports.

Erwin Haryono, Executive Director, Head of Communication Department of Bank Indonesia (BI), claimed that the depleting foreign exchange reserves resulted from the increasing budget to cover the government’s foreign debts. “The foreign exchange can support the strength of external factors and maintain the stability of the macroeconomy and financial system,” he added in the press release Friday (7/1).

According to Haryono, the foreign exchange reserves in December 2021 are equivalent to the state foreign debt plus 7.8 months of imports. Its position is above the international adequacy standard of three-month import. “BI considers the foreign exchange reserves adequate, thanks to the supports of the stability and well-sustained economic prospects as several economic recovery policies unfold,” he added. (LK/ZH)