Foreign exchange reserves in Indonesia dropped to a five-month low of USD 139.3 billion in May 2023 from 144.2 billion in the previous month. The decline was linked to payment of the government’s external debt and in anticipation of demand for foreign currency liquidity in the banking industry as economic activity continued to accelerate. The central bank noted that the official reserve assets were equivalent to 6.0 months of imports and servicing the government’s external debt and remained adequate, supported by stability in both macroeconomic and financial sectors.
