Indonesia end-May foreign reserves fall to $144.9B

Indonesia’s foreign exchange reserves declined to $144.9 billion at the end of May 2026, down from $148.2 billion in March 2026. This reduction reflects ongoing efforts by the Bank of Indonesia to stabilize the rupiah amid external debt servicing requirements. Despite the decline, the country’s reserves remain well above the international benchmark of three months of imports, covering 5.8 months when accounting for both imports and government external debt servicing.

The trend of declining reserves has continued since early 2026, with reserves falling from a peak of $156.5 billion in December 2025. Analysts attribute the decline to a combination of factors, including foreign debt repayments and interventions to support the rupiah amid global financial uncertainty. However, the central bank has emphasized that the current reserve level remains sufficient to support external sector resilience and macroeconomic stability.

Looking ahead, forecasts suggest that Indonesia’s foreign exchange reserves are expected to recover, with projections indicating a rise to $164 billion by the end of the second quarter of 2026. Long-term projections also anticipate a gradual increase, with reserves expected to reach $183 billion by 2027. These expectations are supported by continued foreign capital inflows and positive investor sentiment toward Indonesia’s economic outlook.