Foreign Exchange Reserves Indonesia Grew in March 2017
The central bank of Indonesia (Bank Indonesia) said the nation's foreign exchange reserves rose to USD $121.8 billion in late March 2017 from USD $119.9 billion in the preceding month. The increase was primarily attributed to proceeds from tax collection, state revenue from the oil & gas sector, the issuance of global bonds and the auction of Bank Indonesia foreign exchange bills.
These receipts outnumbered the exchange required for repayments of the government foreign debt and Bank Indonesia's maturing foreign exchange bills.
In March 2017 the Indonesian government raised IDR 116 trillion (approx. USD $8.7 billion) from a bond issuance. Part of these bonds went into the hands of foreign parties. So far this year, Indonesia raised IDR 266 trillion (approx. USD $20 billion) from bonds, or nearly 40 percent of the target set in the state budget.
The March 2017 foreign exchange reserves position adequately covers 8.9 months of imports or 8.6 months of imports and servicing of government external debt repayments, which is well above international standards of reserves adequacy at three months of imports. Therefore, Bank Indonesia considers the current asset position safe and able to strengthen the resilience of the external sector and maintain fiscal stability.
Indonesia's foreign exchange reserve position is now coming closer to its record high position ahead of the taper tantrum of the US Federal Reserve, which would give rise to massive capital outflows from Indonesia in 2013, while Bank Indonesia "burned" billions of US dollars to defend the rupiah in the 2014-2015 period.
Foreign Exchange Reserves Indonesia:
