JAKARTA. Bank Indonesia noted that at least two factors had influenced the increase in the position of Indonesia's foreign exchange reserves (cadev) in February 2023 which reached US$140.3 billion, up from US$139.4 billion in the previous month.

Head of the Bank Indonesia (BI) Communication Department Erwin Haryono said the increase in the position of foreign exchange reserves in February 2023 was influenced, among others, by tax revenues and the withdrawal of the government's foreign debt. "The position of foreign exchange reserves was able to support external sector resilience and maintain macroeconomic and financial system stability," he said in an official statement, Tuesday (7/3/2023).

According to Erwin, the position of foreign exchange reserves is equivalent to financing 6.2 months of imports or 6.0 months of imports and servicing the government's foreign debt, and is above the international adequacy standard of around 3 months of imports.

Bank Indonesia views that foreign exchange reserves will remain adequate going forward, supported by maintained economic stability and prospects, as well as various policy responses in maintaining macroeconomic and financial system stability to support the process of national economic recovery. (AM/LM)