Jakarta. Indonesia’s foreign exchange reserves stood at $146.5 billion at the end of August, providing a buffer against external shocks as heightened global uncertainty weighs on emerging markets and pressures the rupiah.

The reserves were equivalent to 5.4 months of imports, or 5.3 months of imports and government external debt repayments, well above the international adequacy standard of around three months of imports, Bank Indonesia (BI) Deputy Governor Destry Damayanti said after the central bank’s September 22-23 Board of Governors Meeting.

“Indonesia’s balance of payments needs to be continuously strengthened to support external resilience amid heightened global uncertainty,” Destry said.

Indonesia’s trade balance returned to a $120 million surplus in July, following a $450 million deficit in June. Foreign portfolio investment also recorded net inflows of $400 million in the third quarter through Sept. 21, supported by the government’s global bond issuance and inflows into government securities.

However, the rupiah weakened 0.78% from the end of August to Rp 17,855 per US dollar on Sept. 22, as global financial uncertainty intensified.

Renewed tensions in the Middle East pushed oil prices as high as $132 per barrel before they fell below $100 on Sept. 22. Meanwhile, the US Federal Reserve raised its benchmark interest rate to 3.75%-4.00% in September, while higher US Treasury yields weighed on investor appetite for emerging-market assets.

BI said it would continue optimizing foreign exchange interventions and expanding incentives to attract foreign investment inflows to support rupiah stability.

“Bank Indonesia and government policy synergy will continue to be strengthened to improve external resilience amid global volatility,” Destry said.

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