Stronger Forex Reserve Structure
Despite the Indonesian foreign exchange reserve’s continuous strengthening and record-breaking, its structure is deemed fragile.
A man walks by the Indonesian Stock Exchange monitor as 2018 trading opens on Jan. 2 in Jakarta. The Vice President hopes that the Indonesian stock market will have a greater multiplier effect on the national economy to maintain its momentum for growth this year.
Despite the Indonesian foreign exchange reserve’s continuous strengthening and record-breaking, its structure is deemed fragile in the face of possible foreign capital reversal.
Bank Indonesia data shows that, as of December 2017, the country’s foreign capital reserve has been at its highest level at US$130.2 billion, a $4.23 billion increase compared to November. The increase mainly resulted from the issuance of $4 billion in government global bonds in December, as well as tax revenues and the government proceeds from oil and gas exports.