Indonesia's August Foreign Exchange Reserves Fall by US$1.3B on Debt Payments

5 hours ago 4

September 8, 2025 | 01:41 pm

Logo or illustration of Bank Indonesia. TEMPO/Imam Sukamto

TEMPO.CO, Jakarta - Bank Indonesia (BI) reported that the country’s foreign exchange reserves stood at US$150.7 billion in August 2025, down by US$1.3 billion from July’s US$152 billion. The July position had also fallen slightly from June’s US$152.6 billion.

Executive Director of BI’s Communication Department, Ramdan Denny Prakoso, said the decline was mainly driven by government external debt repayments and BI’s efforts to stabilize the rupiah amid persistent global financial market uncertainty.

According to him, August’s reserves are still robust, equivalent to financing 6.3 months of imports, or 6.1 months of imports plus government external debt payments.

“This level remains well above the international adequacy standard of around three months of imports,” Denny said in a statement on Monday, September 8, 2025.

BI emphasized that the current reserves are sufficient to support macroeconomic stability and safeguard the financial system.

The central bank highlighted that resilience in the external sector remains intact, supported by stable export performance, projected surpluses in the capital and financial accounts, positive investor sentiment toward Indonesia’s economic outlook, and attractive domestic investment returns.

Meanwhile, BI recorded that the government’s foreign debt reached US$210.1 billion in the second quarter of 2025, reflecting a 10 percent year-on-year increase. This figure is higher than the 7.6 percent growth recorded in the first quarter.

The rise, BI explained, was largely influenced by increased foreign capital inflows into domestic government bonds.

“The government remains committed to managing foreign debt prudently, in a measurable and accountable way, to achieve efficient and optimal financing,” Denny stated earlier on August 15, 2025.

By sector, the government’s external debt is allocated to:

  • Health and social services (22.3 percent),

  • Public administration, defense, and social security (19 percent),

  • Education services (16.4 percent),

  • Construction (11.9 percent), and

  • Transportation and warehousing (8.6 percent).

Denny noted that Indonesia’s external debt profile remains stable, with long-term obligations dominating at 99.9 percent of total government foreign debt.

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