RI forex reserves decrease to $17.07b

RI forex reserves decrease to $17.07b

JAKARTA (JP): Indonesia's foreign exchange reserves have
decreased to US$17.07 billion as of Feb. 16 from $20.39 billion
recorded on Jan. 15 and $28.85 billion at the end of June 1997,
according to Bank Indonesia.

Miranda S. Goeltom, the central bank director responsible for
monetary and economic statistics and research, said yesterday the
current level of reserves was enough to finance non-oil and non-
gas imports for 4.2 months.

In addition, Miranda said Indonesia still had $1.87 billion in
stand-by loans, which could be cashed anytime the government
needed.

Miranda, however, did not explain why the reserves were being
depleted.

Currency dealers have said the central bank has been active
lately defending the rupiah from continuous attack by intervening
both in the spot and swap markets.

The rupiah has been under speculative attack since the
devaluation of the Thai baht on July 2. Since then, the rupiah
has lost more than 70 percent of its value against the U.S.
dollar.

In an unprecedented move, Bank Indonesia decided in January to
include all foreign exchange assets available to the central
bank, including foreign exchange deposits by commercial banks and
export drafts, for the official tally of foreign exchange
reserves.

The following shows Bank Indonesia's gross foreign assets from
Dec. 1993 to Feb. 16. (rid)

(Period; Gross foreign assets (in billions of U.S. dollars)):
(End of Dec. 1993; 18.82),
(End of Dec. 1994; 17.42),
(End of Dec. 1995; 18.78),
(End of Dec. 1996; 25.53),
End of March 1997; 26.61),
End of June 1997; 28.85),
End of Sept. 1997; 27.56),
Dec. 15 1997; 22.19),
End of Dec. 1997; 21.42),
Jan. 15 1998; 20.39),
End of Jan. 1998; 19.06),
Feb. 16 1998; 17.07).