Wed, 13 May 1998

BI net int'l reserves increase to $14.59b

JAKARTA (JP): Bank Indonesia's net international reserves as of May 8 totaled US$14.59 billion, an increase of $276.3 million from $14.31 billion the previous week.

The central bank said in its weekly economic indicators report that the higher reserves were coming from the drawing of the government's overseas loans.

BI's gross foreign assets also increased by $1.26 billion to $19.03 billion on the back of an increase in securities and export drafts held by the central bank.

The central bank said net international reserves were still higher than the minimum level agreed with the International Monetary Fund. But the bank did not mention the level.

BI also reported that its net domestic assets reached negative Rp 40.36 trillion, indicating a contraction of Rp 2.66 trillion from the level on May 1.

The contraction resulted from the decline in net claims on the government and Indonesian Bank Restructuring Agency (IBRA), the statement said.

BI explained that the contraction in net claims on the government resulted from higher tax revenue and the drawing of offshore loans.

The decline in net claims on IBRA followed the improving liquidity of the banks under the supervision of the agency, it added.

Bank Indonesia said net domestic assets were far below the ceiling set by the IMF. Again the bank did not mention the ceiling.

The central bank said that the improvements in NIR and NDA figures were also reflected in the decline in reserve money by Rp 700 billion during the week.

Meanwhile, money in circulation shrank by Rp 950 billion, indicating an inflow of the public's money into the banking system, it said. (rei)

Table A: Foreign Reserves (in million dollars)

April 24 May 1 May 8

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Gross foreign assets 17,755.9 17,762.4 19,026.1

- Liquid reserves * 11,466.0 11,435.3 12,523.7

- Other reserves ** 6,289.1 6,327.1 6,502.4

Gross foreign liabilities 2,940.9 2,940.9 3,921.2

Net forward positions -34.0 -34.0 -34.0

Reserve against

foreign currency deposits 468.4 478.0 485.1

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Net international reserves 14,312.6 14,309.5 14,585.8

* 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 offshores and deposits parked at foreign banks to guarantee letter of credits.

Table B: Monetary Indicators (in billion rupiah)

April 24 May 1 May 8

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Reserve money 60,346 61,489 60,801

- Currency in circulation 44,115 44,820 43,871

- Deposits at central bank 15,325 15,749 16,039

Net international reserves

(Rupiah at constant rate) 100,188 100,165 102,101

(in million dollars) 14,312.6 14,309.5 14,585.8

Net domestic assets -38,564 -37,702 -40,361

- Net claims on government -27,028 -27,624 -30,086

- Net claims on IBRA 101,849 101,826 101,400

- Liquidity credits 26,964 26,992 27,141

(of which to Bulog) 15,591 15,598 15,663

- Open market operations -45,197 -45,302 -45,174

Source: Bank Indonesia