Indonesia: FX reserves retreated in January – UOB

Enrico Tanuwidjaja, Economist at UOB Group, reviews the latest FX reserves results in Indonesia.

Key Takeaways

“Indonesia’s foreign exchange reserves decreased to USD141.3bn in Jan 2022; down by USD3.6bn from the previous month.”

“The decrease of reserve assets in Jan was attributable to the repayment of the government’s external debt and the decrease in foreign exchange placement in Bank Indonesia to anticipate foreign exchange liquidity needs in line with the recovery in economic activity.”

“Bank Indonesia views that the official reserve assets will remain adequate, along with several accommodative policies to support long-term economic recovery.”