Foreign inflows of 195 trillion Rupiah into Indonesian assets in July bolster the Rupiah despite a slight dip in forex reserves.
The Indonesian Rupiah strengthened against the USD, with USD/IDR trading near 17,940 as foreign investors returned to local bonds and equities. Inflows reached 195 trillion Rupiah (USD 10.7 billion) in July, reversing months of outflows and supporting the currency.
Indonesia’s foreign exchange reserves edged lower to USD 145.3 billion in July from USD 145.6 billion in June. The decline stemmed from debt repayments and central bank interventions to stabilize the Rupiah amid global market volatility, though reserves remain above international adequacy benchmarks.
Economists noted that renewed overseas demand for Indonesian debt reflects improving sentiment, with inflows into government bonds and Bank Indonesia securities driving the Rupiah’s resilience.