Indonesia’s foreign exchange reserves drop to $130.4 billion
JAKARTA: Indonesia’s foreign exchange (forex) reserves dropped by $1.3 billion to $130.4 billion at the end of February, data from the central bank showed on Friday.
The country had foreign outflows in government bonds and stocks during the month linked to the coronavirus outbreak.
Still, Bank Indonesia Governor Perry Warjiyo said that Indonesia has “more than enough” foreign exchange reserves to maintain market stability. The first drop in foreign exchange reserves since November was mainly caused by payments of government’s foreign debts, the bank said in a statement.
Indonesia’s central bank is ready to intervene in spot foreign exchange, domestic non-deliverable forward and bond markets, an official said on Friday, after global equity markets tumbled on coronavirus fears.
“Bank Indonesia remains committed to maintain rupiah stability,” Nanang Hendarsah, the bank’s head of monetary operations, told Reuters by text. The rupiah, which had appreciated earlier this week, fell 0.35% on Thursday to 14,160 a dollar. The currency plunged 4% last week amid capital outflows related to fears of the global spread of the coronavirus.
Indonesia will soon announce a second policy package aimed at easing rules for exports and imports as supply chains have been disrupted by the spread of the new coronavirus, a senior government official said.
The measures follow the unveiling of a 10.3 trillion rupiah ($720 million) stimulus package last week to support consumer spending and tourism as well as the central bank’s announcement on Monday that it will step up intervention to support its currency and bond markets.
China, where the epidemic originated, is Indonesia’s biggest trading partner and a major source of investment and tourists. The government has said the slowdown in China could see Indonesia’s economic growth weaken to 4.7% this year compared with 5.02% in 2019.
“Our previous package focuses on people’s movements, this new one will focus on the movement of goods,” Susiwijono Moegiarso, secretary of the coordinating ministry for economic affairs, told a news conference.