Indonesia Forex Reserves Fall to 8-Month Low

Indonesia’s foreign exchange reserves fell to an eight-month low of USD 152 billion in July 2025 from USD 152.6 billion in the previous month. Despite the slight dip, the reserve level remains robust, supported primarily by foreign debt repayments by the government and Bank Indonesia’s efforts to stabilize the Rupiah amid ongoing global financial market volatility. The current reserve position is sufficient to finance 6.3 months of imports or 6.2 months of imports including government external debt obligations—well above the international adequacy benchmark of around three months of imports. Looking ahead, Bank Indonesia anticipates that foreign exchange reserves will remain sufficient to safeguard the external sector. This outlook is underpinned by a sustained export performance, an expected surplus in the capital and financial account, and continued positive investor sentiment towards the domestic economy and its attractive investment returns.