Foreign reserves up to $34.81b

Foreign reserves up to $34.81b

The Jakarta Post, Jakarta

Indonesia's foreign exchange reserves as of Oct. 15, reached
US$34.81 billion, rising by $91.90 million from the previous
week, the central bank reported.

"The hike was mainly caused by (higher) oil and gas revenue,"
it said in a media statement on Wednesday, largely due to the
soaring international oil prices.

Indonesia remains a top oil and gas exporter in the world,
although it became a net oil importer in March.

On Tuesday, U.S. light crude was off 32 U.S. cents at $53.35 a
barrel following Monday's $1.26 slide from a record close of
$54.93 per barrel on Friday. Brent crude in London eased 11 U.S.
cents to $48.80 a barrel on Tuesday.

Indonesia has been steadily strengthening its foreign reserves
in the hope of regaining investor confidence over the country's
monetary stability following the end of its lending agreement
with the International Monetary Fund (IMF).

A healthy foreign reserve base would boost confidence and
provide a safeguard against speculation of the rupiah.

Meanwhile, the statement also said that the base money
position in the same period increased by Rp 965 billion to reach
Rp 177.79 trillion.

"This increase was mainly caused by a rise in banks accounts
at Bank Indonesia," it added.