Foreign Reserves Fall as Government Repays Debt and BI Defends Rupiah
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JAKARTA, Investortrust.id — Bank Indonesia reports that the country’s foreign exchange reserves have declined in August 2025 to $150.7 billion from $152.0 billion in July, as the government repays external debt and the central bank steps in to stabilize the rupiah amid global financial uncertainty.
Executive Director of the Communication Department at Bank Indonesia Ramdan Denny Prakoso said the decline was primarily driven by two factors: scheduled government foreign debt repayments and central bank intervention to maintain rupiah stability.
“Bank Indonesia has taken stabilization measures in response to persistent uncertainty in global financial markets,” Denny said in an official statement on Monday, Sept. 8, 2025.
The reserve position at the end of August was equivalent to financing 6.3 months of imports or 6.1 months of imports and government external debt service, comfortably above the international adequacy standard of three months of imports.
According to Bank Indonesia, the current level of reserves remained sufficient to support external sector resilience while safeguarding macroeconomic and financial stability.
Looking ahead, the central bank expects reserves to remain adequate, supported by sustained export performance, a capital and financial account that is projected to remain in surplus, and continued positive investor perception of Indonesia’s economic outlook and investment returns.
“Bank Indonesia continues to strengthen coordination with the government to enhance external resilience, safeguard stability, and support sustainable economic growth,” Denny said.
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