By: Puteri Lestari*)
Indonesia’s steadily increasing foreign exchange reserves indicate an increasingly solid national economic foundation amidst uncertain global dynamics. Bank Indonesia data shows that as of the end of June 2025, Indonesia’s foreign exchange reserves reached USD 152.6 billion, an increase compared to USD 152.5 billion the previous month. Although the growth is not significant in nominal terms, this increase has strategic significance in the context of macroeconomic stability and the resilience of the national external sector.
This increase in foreign exchange reserves reflects strong state revenues from the tax and services sectors, as well as the government’s successful issuance of global bonds. This demonstrates that investor confidence in the Indonesian economy remains high, as evidenced by stable capital inflows and consistent interest in domestic financial instruments. This combination serves as a key pillar of national economic resilience amidst global economic fluctuations, including financial market turmoil and geopolitical pressures.
Indonesia’s foreign exchange reserves at the end of June 2025 were equivalent to financing 6.4 months of imports or 6.2 months of imports and servicing government foreign debt. This figure far exceeds the international standard, which requires a minimum of three months of imports. Therefore, Indonesia’s foreign exchange reserves are not only adequate but also demonstrate the country’s ability to maintain exchange rate stability and support the continuity of external financing in the short to medium term.
The stability of foreign exchange reserves is also correlated with the performance of the rupiah exchange rate, which has shown positive recovery. In June 2025, the rupiah only weakened by 0.5 percent year-to-date, a significant improvement compared to the 4 percent depreciation at the beginning of the year. This indicates that Bank Indonesia’s stabilization strategy is effective, although global volatility remains a factor that requires vigilance.
On the other hand, Indonesia’s export sector continues to perform well, particularly energy and metal commodities, which contribute to the trade balance surplus. This export outlook is supported by the government’s success in lobbying for tariff elimination on more than 1,700 types of export products to the United States, particularly in the critical minerals and energy sectors. This provides Indonesia with greater room to strengthen its foreign exchange reserves through sustained export revenues.
Indonesia’s current external resilience is also supported by positive global investor sentiment towards the domestic market. The easing global situation, such as the easing of geopolitical tensions between Iran and Israel, and the achievement of several trade agreements between the United States and countries such as the United Kingdom and Vietnam, have become positive catalysts for emerging markets, including Indonesia. In this context, Indonesia is considered an attractive investment destination because it offers competitive returns with relatively manageable risks.
According to Bank Mandiri Chief Economist Andry Asmoro, Indonesia’s foreign exchange reserves have the potential to reach USD 155-160 billion by the end of this year, in line with improving capital inflows and increasingly adaptive monetary policy. This outlook provides a positive signal that Indonesia has strong economic prospects and is capable of maintaining growth momentum, despite lingering global challenges.
Similarly, the Head of Economics at Bank Syariah Indonesia, Banjaran Surya Indrastomo, assessed that the trade surplus from the non-oil and gas sector, particularly leading commodities such as coal and base metals, will remain a key pillar in maintaining the stability of foreign exchange reserves in the coming months. He emphasized that although the potential for significant increases is limited, the stability of the foreign exchange position is sufficient to support the exchange rate and overall economic stability.
Bank Indonesia also continues to synergize with the government to strengthen Indonesia’s external position. These efforts include exchange rate stabilization, capital flow management, and close monitoring of external risks such as global interest rate policy and commodity price fluctuations. With this comprehensive and integrated approach, Indonesia demonstrates that macroeconomic and monetary policies are working in harmony to maintain national economic resilience.
The increase in foreign exchange reserves reflects market confidence in Indonesia’s economic prospects. Healthy reserves provide strategic room for maneuver for the government and Bank Indonesia to respond to any global dynamics without sacrificing domestic stability. Furthermore, this position provides reassurance to businesses and the public that the Indonesian economy is on a safe and directed path.
With various positive indicators,With the strengthening of the rupiah, a trade surplus, and foreign investor interest in domestic financial instruments, Indonesia demonstrates that its economic strength lies not only in statistical figures, but in its ability to continue to survive, adapt, and grow amidst global uncertainty. Therefore, increasing foreign exchange reserves are not just a number on the national balance sheet, but a symbol of solid and sustainable national economic strength.
*) The author is a Macroeconomic Analyst