Indonesia's foreign exchange reserves decreased in 2022, according to UOB

Enrico Tanuwidjaja, an economist with the UOB Group, analyzes the most recent FX Reserves in Indonesia report.

Main Points

The study stated that although Indonesia's foreign exchange reserves declined by USD 7.7 billion throughout the year, they increased by $3.2 billion to $137.2 billion in the final month of 2022.

The most current reserve level was comparable to funding 6 months of imports or 5.9 months of imports and servicing the government's foreign debt, It is a lot more than the global sufficiency requirement of three months of imports.

The government's decrease in its external debt, along with revenue from services and tax payments, were all factors in the reserves' substantial increase last month. According to BI, the official reserve assets will continue to be enough to support stability and safeguard the Indonesian economy.