Indonesia’s foreign reserves hit record high despite rupiah rout

Domestic concerns, such as the fiscal outlook and slowing economic growth amid President Prabowo Subianto’s shuffling of policy priorities, are also weighing on market sentiment

Published Mon, Apr 14, 2025 · 12:01 PM

Indonesia’s foreign exchange reserves gained US$2.6 billion last month to reach another record high even as the global markets turmoil battered the rupiah.

The stockpile climbed to US$157.1 billion in March, Bank Indonesia said on Monday (Apr 14), adding that tax and service revenues as well as the withdrawal of the government’s foreign loans boosted reserves.

Indonesia also required exporters of natural resources to keep 100 per cent of their US dollar-denominated earnings onshore for at least a year, starting last month.

The rise in the forex war chest provides additional support for the monetary authority to defend a currency hard hit by multiple factors this year, including US President Donald Trump’s tariff salvo. The currency last week fell to its weakest level ever against the US dollar, surpassing a low point set in the 1998 Asian financial crisis.

The rupiah gained as much as 0.2 per cent to 16,755 against the UUS dollar in intraday trading on Monday. The currency has lost almost 4 per cent so far this year, tailing its Asian peers.

Domestic concerns, such as the fiscal outlook and slowing economic growth amid President Prabowo Subianto’s shuffling of policy priorities, are also weighing on market sentiment. Indonesian stocks recorded their steepest intraday decline since 2011 in March, forcing the central bank to intervene heavily to stem the impact of the stock meltdown on the rupiah. BLOOMBERG

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