Foreign Exchange Reserves Fell by US$ 1.3 Billion at the End of May
Bank Indonesia (BI) reported that the position of foreign exchange reserves at the end of May 2026 was recorded at US$ 144.9 billion, or the equivalent of Rp 2,630 trillion (at an exchange rate of Rp 18,160 per US dollar). This position represents a decrease of US$ 1.3 billion from US$ 146.2 billion at the end of April.
“The development of foreign exchange reserves in May 2026 was influenced by the issuance of government global bonds as well as tax and service revenues, amidst the payment of the government’s foreign debt and Bank Indonesia’s exchange rate stabilisation policies in response to high uncertainty in global financial markets and seasonal domestic demand for foreign exchange,” said Ramdan Denny Prakoso, Executive Director of the Bank Indonesia Communications Department, in a press release on Monday, 8 June 2026.
Denny claimed that the overall position of foreign exchange reserves in May remains strong. He stated that the position is equivalent to 5.6 months of import financing, or 5.5 months of imports and government foreign debt payments. This condition remains above the international adequacy standard of approximately 3 months of imports.
“Bank Indonesia assesses that these foreign exchange reserves are capable of supporting external sector resilience as well as maintaining macroeconomic and financial system stability,” said Denny.
Bank Indonesia believes that external sector resilience remains good, supported by an adequate foreign exchange reserve position and foreign capital inflows, in line with positive investor perceptions regarding the national economic outlook and attractive investment yields.
On Monday morning, 8 June 2026, the rupiah exchange rate weakened to the level of Rp 18,129 per US dollar. Ibrahim Assuaibi, Director of PT Traze Andalan Futures, predicted that the rupiah could weaken to the level of Rp 19,000 per US dollar by the end of June.
Ibrahim stated that the decline in the rupiah exchange rate occurred amidst growing anxiety among investors. “The decline of the rupiah currency is happening amidst investor concerns regarding the significant agenda of President Prabowo, particularly the free nutritious meal project, the Red and White Village Cooperative project, and most importantly, the increase in fuel subsidies,” he said.