Jakarta. Indonesia's foreign exchange reserves increased by $4.9 billion at the end of December, thanks to strong capital inflows into the country's financial markets and an influx of revenue from the oil and gas sector.
Data released by Bank Indonesia on Monday (09/01) shows that foreign exchange reserves rose to $116.4 billion in December from $111.5 billion a month earlier.
The central bank said in a statement that a successful global bonds sale last month, an influx of dollars from tax revenue and export proceeds from the oil and gas sector, withdrawals of foreign debt by the government at the end of the year, and additional tax revenue contributed to the forex rise in December.
Tax revenue received a boost from the government-initiated tax amnesty program that kicked off in July and which will wind down in March.
In December, proceeds from oil and gas sector exports increased, thanks to rising global oil prices.
"Bank Indonesia believes the level of foreign exchange reserves is able to support resilience against external risks and help maintain a sustainable growth for Indonesia onwards," Bank Indonesia executive director Tirta Segara said in Monday's statement.
December's reserve level is adequate to cover about 8.8 months of imports, or 8.4 months of imports and servicing of government external debt repayments, Bank Indonesia said. It added that it is also "well above the international standards of reserve adequacy at three months of imports."