The foreign exchange (forex) reserves of Indonesia fell to US$126.0 billion at the end of March 2018, down from US$128.06 billion one month earlier. The decrease in reserve assets was particularly attributed to the use of foreign exchange for public foreign debt repayments and rupiah stabilization efforts amid pressures stemming from rising global uncertainty in the financial markets. Uncertainties originate from the latest Fed Funds Rate hike as well as the looming trade war between the USA and China (but would be felt across the globe).
According to central bank (Bank Indonesia/BI), the current reserve asset position is equivalent to the financing of 7.9 months of imports or 7.7 months of imports and servicing of government external debt, well above the international standard of reserve adequacy of three months of imports.
