RI's forex reserves rise sharply
Mataram, W Nusa Tenggara (ANTARA News) - Indonesia`s foreign exchange reserves rose significantly in recent months, suggesting that the domestic economy continued to expand at a robust pace, a central bank official said on Thursday.
"Our foreign exchange reserves have of late increased sharply and now they reach more than US$80 billion," Bank Indonesia Deputy Governor Muliaman D. Hadad said after inducting Muhamad Junaifin as chief of the central bank`s office in West Nusa Tenggara replacing Tri Dharma.
The increase in foreign exchange reserves indicated that the Indonesian economy continued to improve amidst global economic downturn, he said.
The country`s financial condition remained good, helped by the stable banking system and the banking industry`s improved intermediary function, he said.
The foreign exchange reserves were enough to finance imports and repay the government`s foreign debts for 5.87 months, he said.
He expressed optimism the foreign exchange reserves would continue to increase in line with a recent rise in foreign capital inflows which also had an impact on the rupiah`s appreciation against the dollar.
"The trend is expected to continue until the next 3 to 4 years because of unfavorable prospects for the developed nations` economies," he said.
He said regional governments needed to prepare basic infrastructures to attract the foreign capital inflows.
"If they are long-term investment they will contribute more to the national economy because there will be large projects, he said.
"Our foreign exchange reserves have of late increased sharply and now they reach more than US$80 billion," Bank Indonesia Deputy Governor Muliaman D. Hadad said after inducting Muhamad Junaifin as chief of the central bank`s office in West Nusa Tenggara replacing Tri Dharma.
The increase in foreign exchange reserves indicated that the Indonesian economy continued to improve amidst global economic downturn, he said.
The country`s financial condition remained good, helped by the stable banking system and the banking industry`s improved intermediary function, he said.
The foreign exchange reserves were enough to finance imports and repay the government`s foreign debts for 5.87 months, he said.
He expressed optimism the foreign exchange reserves would continue to increase in line with a recent rise in foreign capital inflows which also had an impact on the rupiah`s appreciation against the dollar.
"The trend is expected to continue until the next 3 to 4 years because of unfavorable prospects for the developed nations` economies," he said.
He said regional governments needed to prepare basic infrastructures to attract the foreign capital inflows.
"If they are long-term investment they will contribute more to the national economy because there will be large projects, he said.