RI reserves down to $34.27b

JAKARTA: Indonesia's foreign currency reserves fell US$346.4 million to $34.27 billion during the second week of June, the central bank reported on Monday.

Bank Indonesia said the decline was caused by a recent increase in U.S. dollar demand for foreign debt payments as well as imports, which exceeded revenue from exports.

State oil and gas company PT Pertamina recently said it would need up to $1.5 billion for oil imports to increase the country's oil stockpile from the current 17.5 days to the 22-day level, which is considered safe.

Trading in Indonesia's forex market amounts to between $1 billion and $4 billion per day. The central bank recently introduced a new regulation that limits speculative trading that could weaken the rupiah. -- JP