Mataram, W Nusa Tenggara (ANTARA News) - Indonesia`s foreign exchange reserves rose significantly in recent months, suggesting that the domestic economy continued to expand at a robust pace, a central bank official said on Thursday.
"Our foreign exchange reserves have of late increased sharply and now they reach more than US$80 billion," Bank Indonesia Deputy Governor Muliaman D. Hadad said after inducting Muhamad Junaifin as chief of the central bank`s office in West Nusa Tenggara replacing Tri Dharma.
The increase in foreign exchange reserves indicated that the Indonesian economy continued to improve amidst global economic downturn, he said.
The country`s financial condition remained good, helped by the stable banking system and the banking industry`s improved intermediary function, he said.
The foreign exchange reserves were enough to finance imports and repay the government`s foreign debts for 5.87 months, he said.
He expressed optimism the foreign exchange reserves would continue to increase in line with a recent rise in foreign capital inflows which also had an impact on the rupiah`s appreciation against the dollar.
"The trend is expected to continue until the next 3 to 4 years because of unfavorable prospects for the developed nations` economies," he said.
He said regional governments needed to prepare basic infrastructures to attract the foreign capital inflows.
"If they are long-term investment they will contribute more to the national economy because there will be large projects, he said.