Indonesia's Foreign Exchange Reserves Reach $116.4bn

Bank Indonesia (BI) reported a total of US$116.4 billion worth of foreign exchange reserves in December, up by US$4.9 billion compared to November 2016, which stood at US$111.5 billion.

    The increase was boosted by the issuance of global bonds debt securities as well as oil and gas tax, which exceeded the amount required to settle the governments foreign debt and the Banks due foreign exchange securities, said one of the Banks officials in Jakarta.

    "The position of the foreign exchange reserves as per December 2016 can actually fund import activities for more than 8 months or for over 8 months of import and governments foreign debt settlement. It can also maintain a position above the international adequacy standards of about three months import," said the Banks Executive Director of Communication Department Tirta Segara in a written statement.

    According to the banks referential currency (JISDOR BI), rupiahs movement in December 2016 is recorded at around 13,300 to 13,500 per US dollar, Indonesian news agency (ANTARA) reported.

    "The currency itself is steady in December 2016 so there is a significantly smaller need for stabilisation measures in December 2016 compared to November, following the US presidential elections," said Deputy of Bank of Indonesia Perry Warjiyo on Friday, January 6.

    The bank is optimistic in the reserves ability to support the external sector resilience as well as maintaining Indonesia's future economic growth.