Indonesia FX Reserves Hit Nearly Two-Year Low on Rupiah Defense

Indonesia’s foreign-exchange reserves fell for a third straight month in March to the lowest level in nearly two years as the central bank stepped up market intervention to stabilize the falling rupiah.

Foreign reserves declined $3.7 billion to $148.2 billion, the lowest since July 2024, due to Bank Indonesia’s steps to stabilize the currency and the government’s external debt repayments, the central bank said in a statement on Wednesday. The stockpile shrank by $8.3 billion in the first three months of this year.

The rupiah declined 1.3% last month as the war in the Middle East drove up the cost of oil imports and revived long-term worries about fiscal slippage. BI said on Tuesday that it is continuing to intervene in the markets to maintain exchange rate stability, which is its “top priority.”

Indonesia’s dollar stockpile can cover 5.8 months of imports and foreign debt servicing. The stash is adequate to support external sector resilience and maintain macro economic and financial system stability, the central bank said.

The rupiah strengthened the most in seven months against the dollar on Wednesday as the greenback fell following news of a US-Iran ceasefire.

READ: