Indonesia’s official reserve asset remained high at US$133.7 billion as of end-October 2020, despite lower than US$135.2 billion as of end-September 2020. The position of official reserve assets was equivalent to finance 9.7 months of imports or 9.3 months of imports and servicing government’s external debt, and well above the international adequacy standard of three months imports. Bank Indonesia considers that the official reserve assets position was able to support the external sector resilience and maintain macroeconomic and financial system stability.
The decline in official reserve assets in October 2020 was influenced by, amongst others, the government’s external debt payments. Moving forward, Bank Indonesia views that the official reserve assets remain adequate, supported by the stability and solid domestic economic outlook, in line with the policy responses to stimulate economic recovery.