Indonesia Foreign Reserves Fall Further to Two-Year Low in April

Indonesia’s foreign-exchange reserves fell further in April to the lowest in nearly two years as the central bank stepped up intervention to defend the rupiah.

Foreign reserves fell $1.95 billion to $146.2 billion, the lowest since July 2024, due to the government’s external debt payments and the central bank’s measures to stabilize the rupiah, Bank Indonesia said in a Friday. The stockpile has fallen by $10.27 billion this year.

Falling reserves increases the risk of credit rating downgrades for Indonesia with and holding a negative outlook. The rupiah slipped to a record low this month, as the surge in oil prices this year added to concerns over the nation’s fiscal health under President Prabowo Subianto.

Indonesia’s reserves can cover 5.6 months’ worth of imports and foreign debt servicing. That’s adequate to ensure external resilience and the stability of the financial system, the central bank said.