Indonesia’s Foreign Reserves Fall by $2 Billion in September, Government Cites Strong Fundamentals
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JAKARTA, Investortrust.id — Indonesia’s foreign exchange reserves fell by $2 billion to $148.7 billion in September 2025, as foreign investors extended their selling streak across both the stock and bond markets. Despite the capital outflows, the government remains confident in Indonesia’s solid economic fundamentals, supported by stable exports and resilient investment performance.
Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia’s export performance continues to show positive momentum despite the global headwinds.
“Our exports remain relatively strong and are being monitored periodically,” Airlangga said during his keynote address at Permata Bank’s Wealth Wisdom 2025 forum in Jakarta on Tuesday, Oct 7, 2025.
He added that Indonesia’s macroeconomic foundation remains solid, reflected in steady second-quarter growth of 5.12% year-on-year. “The Jakarta Composite Index has surpassed 8,000, and investment remains robust in both the first half and third quarter, though official data have yet to be released. We estimate total investment to stay around Rp 1,400 trillion,” he said.
Bank Indonesia (BI) reported that the decline in reserves, from $150.7 billion in August to $148.7 billion in September, mainly resulted from government debt repayments and efforts to stabilize the rupiah amid continued global market volatility.
Ramdan Denny Prakoso, Executive Director of BI’s Communication Department, emphasized that the current reserve level is equivalent to 6.2 months of imports, or six months of imports plus government external debt payments—well above the international adequacy standard of around three months.
“Indonesia’s foreign reserves remain strong, supporting the country’s external resilience as well as macroeconomic and financial stability,” Ramdan said.
Data from Ministry of Finance show that foreign investors have recorded net sales in both the stock and government bond (SBN) markets throughout most of 2025. In the stock market, foreign investors were net sellers for five consecutive months through September, with total outflows reaching around Rp 20.8 trillion in August and another Rp 3.8 trillion in early October. The last major net buying period occurred in early 2024 when inflows peaked at Rp 28.8 trillion.
In the government bond market, the pressure has been more severe. Foreign investors sold a net Rp 45.8 trillion worth of SBN in October after already offloading Rp 7.6 trillion in June, marking one of the sharpest monthly outflows since the pandemic recovery. Earlier in 2024, inflows were strong—reaching Rp 39.2 trillion in March—but sentiment reversed as U.S. yields climbed and global risk appetite weakened.
This capital flight coincided with continued pressure on the rupiah, which fell to Rp 16,598 per U.S. dollar as of Oct 6, 2025, according to the Jakarta Interbank Spot Dollar Rate (JISDOR). The currency has depreciated more than 6% year-to-date, nearing its weakest level since the early 2020 pandemic shock.