Government Debt Payments and BI Rupiah Stabilisation Cause Indonesia's Foreign Exchange Reserves to Drop to US$144.9 Billion in May 2026

Jakarta, VIVA – Bank Indonesia has recorded a decline in foreign exchange reserves at the end of May 2026 compared to the previous month. The reserves were recorded at US$144.9 billion, lower than the US$146.2 billion recorded at the end of April 2026.

The Executive Director of Bank Indonesia’s Communication Department, Ramdan Denny Prakoso, revealed that 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.

“As a response to high uncertainty in global financial markets and seasonal domestic demand for foreign exchange,” said Ramdan, as quoted from his statement on Monday, 8 June 2026.

He explained that, overall, the foreign exchange reserve position at the end of May 2026 remains strong, equivalent to 5.6 months of imports or 5.5 months of imports and government foreign debt payments, and 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 and maintaining macroeconomic and financial system stability,” he added.

Looking ahead, Bank Indonesia believes that external sector resilience will remain good, supported by an adequate foreign exchange reserve position and foreign capital inflows, in line with positive investor perceptions of the national economic outlook and attractive investment yields.

“Bank Indonesia continues to increase synergy with the Government to strengthen external resilience in order to maintain economic stability to support sustainable economic growth,” he concluded.