Indonesia's Foreign Exchange Reserves Fall US$1.3 Billion as Rupiah Weakens

TEMPO.CO, Jakarta – Bank Indonesia (BI) reported that Indonesia's foreign exchange reserves stood at US$144.9 billion at the end of May 2026, equivalent to around Rp2,630 trillion based on an exchange rate of Rp18,160 per U.S. dollar. The figure was down by US$1.3 billion from US$146.2 billion recorded at the end of April.

"The development of foreign exchange reserves in May 2026 was influenced by the issuance of government global bonds as well as tax and service revenues, amid government external debt payments and Bank Indonesia's rupiah stabilization measures in response to heightened uncertainty in global financial markets and seasonal domestic demand for foreign exchange," BI Communications Department Executive Director Ramdan Denny Prakoso said in a statement on Monday, June 8, 2026.

Denny said the country's foreign exchange reserves remained strong despite the decline.

According to him, the reserve position was equivalent to financing 5.6 months of imports, or 5.5 months of imports and government external debt payments. The level remains well above the international adequacy standard of around three months of imports.

"Bank Indonesia views the foreign exchange reserves as capable of supporting external sector resilience and maintaining macroeconomic and financial system stability," Denny said.

Bank Indonesia also expressed confidence that Indonesia's external sector would remain resilient, supported by adequate foreign exchange reserves and continued foreign capital inflows in line with positive investor perceptions of the country's economic prospects and attractive investment returns.

Meanwhile, the rupiah weakened to Rp18,129 per US dollar on Monday morning, June 8, 2026.

Ibrahim Assuaibi, Director of PT Traze Andalan Futures, estimated that the rupiah could weaken further to Rp19,000 per U.S. dollar by the end of June.

Ibrahim said the depreciation of the rupiah came amid growing investor concerns.

"The rupiah's decline reflects investor concerns over President Prabowo's extensive policy agenda, particularly the free nutritious meals program, the Red and White Village Cooperative project, and, most importantly, rising fuel subsidies," he said.

Read: Rupiah Weakens to 18,129 per US Dollar, JCI Drops 4%

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