Foreign exchange reserves in Indonesia dropped to a ten-month low of US$137.1 billion in August 2023, from US$137.7 billion the previous month. The decline was driven primarily by government foreign debt payments and the need to stabilize the currency exchange rate in response to increased global financial market uncertainty. The reserve level was equal to funding needs for 6.2 months of imports, above global standards, and a level that the country’s central bank viewed as adequate to support financial system stability and maintain the macroeconomic outlook to bolster sustainable economic growth.
