Indonesia: FX Reserves shrank in 2022 – UOB

Economist at UOB Group Enrico Tanuwidjaja reviews the latest report of FX Reserves in Indonesia.

Key Takeaways

“Indonesia’s foreign exchange reserves increased by USD3.2bn to USD137.2bn in Dec 2022 but declined a total of USD7.7bn throughout last year.”

“The latest reserve level was equivalent to finance 6 months of import or 5.9 months of imports and servicing the government’s external debt, well above the international adequacy standard of 3 months of imports.”

“Services and tax payment revenue and government external debt drawdown accounted for last month’s significant increase in the reserves. BI maintains the view that the official reserve assets will remain adequate to anchor stability and safeguard the Indonesian economy.”