Wed, 08 Jul 1998

Assets contract by Rp 41.78t

JAKARTA (JP): Bank Indonesia's net domestic assets (NDA) shrank to minus Rp 74.816 trillion as of July 3, representing a monetary contraction of Rp 41.782 trillion from the previous week.

Bank Indonesia (BI) said the huge contraction was mostly as a result of a change in the base which it uses to calculate its net international reserves (NIR) from Rp 7,000 per U.S. dollar to Rp 10,000, as suggested by the International Monetary Fund.

The NIR rose slightly to US$14.742 billion from $14.609 billion.

BI's net claims on the government also experienced a further contraction of Rp 5.547 trillion to minus Rp 51.832 trillion as of July 3 from minus Rp 46.285 on June 26, the central bank said in its weekly report.

It said the increase in government deposits in the central bank was due to the disbursement of loans from the Asian Development Bank and from oil and other tax revenues.

The central bank also said that its operation to stabilize the rupiah through the sale of promissory notes had caused a net contraction of Rp 28 billion to minus Rp 72.596 trillion.

Its net claims on the Indonesian Bank Restructuring Agency (IBRA) increased again to Rp 136.187 trillion from Rp 132.34 trillion the previous week, indicating a Rp 3.848 trillion increase in credit liquidity to troubled banks under the agency.

BI has been injecting credit liquidity into troubled banks and IBRA has the responsibility of recovering these loans. (rid)

Table A: Foreign Reserves (in million dollars)

June 19 June 26 July 3

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Gross foreign assets 18,978.0 18,995.6 19,129.0

- Liquid reserves * 12,193.4 12,226.8 12,336.8

- Other reserves ** 6,784.6 6,768.8 6,792.2

Gross foreign liabilities 3,921.2 3,921.2 3,921.2

Net forward positions -34.0 -34.0 -34.0

Reserve against

foreign currency deposits 420.9 430.9 431.4

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Net international reserves 14,601.9 14,609.5 14,742.4

* Liquid gross foreign assets include gold, foreign securities, offshore deposits and special drawing rights.

** Other gross foreign assets include export drafts, deposits in the branches of domestic banks in offshore and deposits parked at foreign banks to guarantee letter of credits.

Table B: Monetary Indicators (in billion rupiah)

June 19 June 26 July 3

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Reserve money 67,372 67,689 71,541

- Currency in circulation 50,148 50,454 53,712

- Deposits at central bank 16,309 16,392 16,940

Net international reserves

(Rupiah at constant rate) 102,231 102,267 147,424

(in million dollars) 14,601.8 14,609.5 14,742.4

Net domestic assets -33,420 -33,034 -74,816

- Net claims on government -44,968 -46,285 -51,832

- Net claims on IBRA 133,282 132,339 136,187

- Liquidity credits 19,625 19,511 19,309

(of which to Bulog) 7,634 7,613 7,615

- Open market operations -72,310 -72,568 -72,596

Source: Bank Indonesia