Jakarta. Indonesia's foreign exchange reserves increased by $6.2 billion in June on the back of the sales of foreign-denominated government bonds and central bank securities; rising oil and gas revenue; and foreign debt withdrawals that exceeded foreign debt payments.
The reserves surged to $109.8 billion last month — the highest since May last year — from $103.6 billion a month earlier, according to a statement issued by Bank Indonesia on Thursday (14/07).
Bank Indonesia executive director Tirta Segara said the reserves are adequate to cover 8.4 months of imports, or 8.1 months of imports and foreign debt payments.
"Bank Indonesia believes the foreign exchange reserves are able to protect against external factors and maintain the sustainability of the Indonesian economy in the future," Tirta said.
Indonesia's gross domestic product grew 4.92 percent in the first quarter, compared to 4.71 percent in the same period a year ago. However, it failed to beat the 5.04 percent recorded in the fourth quarter last year.
The rupiah has strengthened by 5 percent against the greenback so far this year on the back of capital inflows into Indonesia's bond and the stock market. The local currency traded at 13,088 against the US dollar on Thursday, according to Bank Indonesia's Jakarta Interbank Spot Dollar Rate.