Bank Indonesia: Foreign Exchange Reserves Fell to $101.7 Billion in September
The central bank of Indonesia (Bank Indonesia) announced on Wednesday (07/10) that the country's foreign exchange reserves had fallen to USD $101.7 billion at the end of September 2015 (from USD $105.3 billion in the preceding month). The reserve assets declined due to the servicing of government foreign debt and rupiah exchange rate stabilization efforts. Until Friday (02/10), the rupiah was plagued by severe pressure caused by looming higher US interest rates.
However, after the release of weak US economic data last Friday, sentiments changed completely and emerging markets saw massive capital inflows on the back of an expected US interest rate hike delay. As a result Indonesia's rupiah and Jakarta Composite Index strengthened significantly.
Based on a statement released by Bank Indonesia, the foreign exchange reserves are adequate to cover seven months of imports or 6.8 months of imports and government foreign debt servicing, well above the international standards of reserve adequacy at three months of imports.
Indonesia's Foreign Exchange Reserves 2008-2015:
| 2008 | 2009 |
2010 | 2011 | 2012 | 2013 | 2014 | 2015² | |
| Foreign Exchange Reserves¹ |
51.6 | 66.1 | 96.2 | 110.1 | 112.8 | 99.4 | 111.9 | 101.7 |
¹ in billion US dollar
² at end-September 2015
Source: Bank Indonesia