Economist at UOB Group Enrico Tanuwidjaja and Yari Mayaseti assess the newest FX reserves figures in Indonesia.
“Indonesia’s overseas alternate reserves rose additional, hitting a brand new all-time excessive at USD146.9bn in September 2021; a rise by USD2.1bn from the earlier month. The most recent reserve degree was equal to finance 8.9 months of import or 8.6 months of imports and servicing the federal government’s exterior debt.”
“The rise of reserve property in September was attributable to tax and companies receipts and the federal government’s exterior debt withdrawal. Going ahead, we’d see a average build-up in FX reserves underpinned by capital inflows, proceeds from exports, in addition to different FX earnings, because the vaccination program continues and the worldwide economic system step by step recovers. Nonetheless, draw back dangers stay on the again of the continued uncertainty from COVID-19 developments and US Fed tapering amongst others, which can end in slower FX earnings and capital outflows.”