Indonesia’s foreign reserves drop to USD 144.9 billion in May, the lowest since June 2024, amid currency stabilization efforts.
The USD/IDR pair climbed for a fifth straight session, trading near 18,200 in Asian hours and approaching its all-time high of 18,247. The Indonesian Rupiah faces pressure from global risk aversion, fiscal concerns, and skepticism over Bank Indonesia’s policy independence.
Foreign exchange reserves fell to USD 144.9 billion in May, down from USD 146.2 billion in April, marking the lowest level in two years. The decline stems from government debt repayments and central bank interventions to support the Rupiah amid seasonal demand for foreign currency and volatile markets.
Investor confidence has waned due to political uncertainty under President Prabowo Subianto, with concerns over fiscal discipline and costly campaign promises threatening economic stability.