Rupiah strengthens as forex reserves hit US$146.5 billion: analyst

Ibrahim Assuaibi attributed the gain partly to Indonesia’s stronger foreign-exchange reserves.

Bank Indonesia’s reserves rose to US$146.5 billion in August from US$145.3 billion in July, according to data cited by Ibrahim.

The central bank said the increase reflected higher tax and service revenues, government foreign borrowing and measures to stabilize the rupiah amid persistent global market uncertainty.

Reserves at the end of August covered 5.4 months of imports, or 5.3 months including government external-debt servicing, exceeding the international adequacy benchmark of about three months.

The reserve position should strengthen Indonesia’s external resilience while supporting macroeconomic and financial-system stability, the central bank said.

Ibrahim said Bank Indonesia expects external resilience to remain solid, citing ample reserves and potential foreign-capital inflows supported by investor confidence and attractive returns.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate, or JISDOR, also strengthened Tuesday to Rp17,618 per dollar from Rp17,653 previously.

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Translator: Alatas, Kenzu