TEMPO.CO, Jakarta – Bank Indonesia reported that Indonesia's foreign exchange reserves rose to US$145.6 billion (around Rp2.62 quadrillion) at the end of June 2026, up US$700 million from US$144.9 billion recorded a month earlier.
In a statement issued on Tuesday, July 7, BI Executive Director of Communications Ramdan Denny Prakoso said the increase was primarily driven by tax and services receipts, despite government external debt repayments and the central bank's foreign exchange market interventions to stabilize the rupiah amid heightened uncertainty in global financial markets.
"The development of the foreign exchange reserves position in June 2026 was mainly influenced by tax and service receipts amid the government's foreign debt payments and Bank Indonesia's exchange rate stabilization policy in response to the high uncertainty in the global financial markets," Denny said.
Why Did Indonesia's Foreign Exchange Reserves Increase?
According to Bank Indonesia, the rise in reserves was supported mainly by higher tax and services receipts, which offset government external debt payments and the central bank's efforts to stabilize the rupiah through foreign exchange market intervention.
The central bank said the current reserve level remains adequate to support Indonesia's external sector resilience while safeguarding macroeconomic and financial system stability.
As of the end of June, Indonesia's foreign exchange reserves were equivalent to financing 5.5 months of imports, or 5.4 months of imports and government external debt payments, well above the international adequacy benchmark of around three months of imports.
Looking ahead, BI expects the country's external sector to remain resilient, supported by ample foreign exchange reserves and continued foreign capital inflows, reflecting investors' positive assessment of Indonesia's economic outlook and attractive investment returns.
Denny added that Bank Indonesia will continue to strengthen coordination with the government to reinforce external resilience and maintain economic stability in support of sustainable growth.
Why Is Fitch Monitoring Indonesia's Foreign Exchange Reserves?
The latest reserve figures come after Fitch Ratings warned that a sustained decline in Indonesia's foreign exchange reserves could put pressure on the country's sovereign credit rating.
Fitch projects that Indonesia's reserves will be sufficient to cover 4.9 months of external payments in 2026, slightly below the 5.0-month median for countries with a 'BBB' sovereign credit rating.
According to the agency, Bank Indonesia's foreign exchange interventions have reduced reserve holdings while absorbing rupiah liquidity, contributing to tighter domestic funding conditions.
"A sustained and sharp decline in foreign exchange reserves, especially if driven by continuous capital outflows associated with weaker investor confidence or further deterioration in governance indicators, could add pressure to the country's credit rating," Fitch said in its report.
Despite the warning, the latest data from Bank Indonesia indicate that the country's reserves remain comfortably above international adequacy standards, providing a buffer against external economic shocks.
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