Jakarta (Indonesia Window) – Indonesia’s foreign exchange (forex) reserves in December 2020 were recorded at 135.9 billion U.S. dollars, an increase compared to 133.6 billion dollars in the previous month, according to the central bank, Bank Indonesia.

Executive Director at Bank Indonesia’s Communication Department Erwin Haryono said in a written statement here on Friday that the position of the foreign reserves is equivalent to financing 10.2 months of imports or 9.8 months of imports and servicing of government external debts, and is above the international adequacy standard of around three months of imports.

Bank Indonesia assesses that the foreign exchange reserves are capable of supporting the external sector resilience and maintaining the macroeconomic and financial system stability, he stated.

Erwin noted that the increase in the foreign exchange reserves in December 2020 was driven by the withdrawals of the government’s foreign loans and tax revenues.

Bank Indonesia saw the foreign exchange reserves would remain adequate in the future as they would be supported by maintained stability and economic prospects in line with various policy responses to promote economic recovery.

Reporting by Indonesia Window