Indonesia Forex Reserves Hit 9-Month Low

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Indonesia’s foreign exchange reserves declined to a nine-month low of USD 150.7 billion in August 2025, from USD 152 billion in July. Despite the drop, the reserves remain at a solid level, buoyed by the government’s external debt repayments and Bank Indonesia’s proactive rupiah stabilization measures amid ongoing global financial market volatility. The current reserve position is sufficient to cover 6.3 months of imports, or 6.1 months when combined with servicing the government's external debt—well above the international adequacy benchmark of around 3 months of imports. Bank Indonesia maintains that the current level of foreign exchange reserves is more than adequate to safeguard external sector resilience, while also reinforcing macroeconomic and financial system stability. Looking ahead, Bank Indonesia remains confident in reserve adequacy, supported by strong export performance, continued surpluses in the capital and financial accounts, and sustained positive investor sentiment.

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