Reasons Indonesia's FX reserves fell by US$2.7 billion: Paying external debt and maintaining the Rupiah

Indonesia’s foreign exchange reserves declined by about US$2.7 billion in February 2026, slipping from US$154.6 billion at the end of January to US$151.9 billion. Bank Indonesia (BI) noted that the decline in Indonesia’s FX reserves was driven by several factors, such as government external debt payments and the Rupiah stabilisation policy. Nevertheless, there were also effects from tax and services receipts as well as draws on government external borrowing that moderated the pace of the reserve decline as of February 2026. BI explained in a press release that the development was influenced by tax and services receipts and draws on government external borrowing, alongside government external debt payments and the Rupiah stabilisation policy in response to persistent high uncertainty in global financial markets. Although it fell, BI reassured that the end-February 2026 FX reserves remained capable of financing 6.1 months of imports, or 5.9 months of imports when including government external debt payments, and remained above the international adequacy standard of around 3 months of imports. BI stated that the reserves bolster external sector resilience and macroeconomic and financial stability. Looking ahead, BI expects external resilience to remain robust, supported by adequate FX reserves and inflows of foreign capital, in line with investors’ positive view of the national economy and attractive investment returns. BI also said it would continue to strengthen synergy with the Government to bolster external resilience and safeguard economic stability to support sustainable growth.