Indonesia’s Foreign Exchange Reserves Remain Stable

Jakarta: Indonesia’s foreign exchange reserves remained relatively stable in July 2026, standing at USD145.3 billion by the end of the month.
 
The July figure marked the first increase following five consecutive months of declining foreign exchange reserves.
 
After reaching USD156.5 billion at the end of December 2025, Indonesia’s reserves fell steadily to USD144.9 billion by the end of May 2026, representing a USD11.6 billion decline.
 
According to Bank Indonesia (BI) Executive Director of Communications Ramdan Denny Prakoso, the recent increase was “primarily driven by tax and service revenues, as well as the issuance of the government’s global bonds.”
 
He highlighted that the development came amid the government’s external debt repayments and continued uncertainty in global financial markets.
 
Ramdan also underscored that the country’s foreign exchange reserves remained adequate, equivalent to financing 5.5 months of imports, or 5.3 months of imports and government external debt repayments.
 
He further expressed confidence that Indonesia’s external sector resilience would stay robust, supported by adequate reserves and renewed foreign capital inflows fueled by positive investor sentiment toward the country’s economic outlook and attractive investment yields.
 
According to BI data, foreign portfolio investment recorded net inflows of USD 8.5 billion in the second quarter of 2026, mainly spurred by Government Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI). The trend continued into the following quarter, with net inflows into SBN reaching USD 100 million as of July 20, 2026.
 
At its July 2026 Board of Governors Meeting, BI maintained its benchmark interest rate at 5.75 percent. The central bank had previously raised the rate by a cumulative 100 basis points (bps) in May and June 2026.
 
BI also assured that it would continue to strengthen coordination with the government to bolster external resilience, maintain economic stability, and support sustainable economic growth.
 
(Jonathan Sianto)