By Laras Arta Prameswari )*
A country’s economic stability is inseparable from the careful management of monetary policy, particularly in facing dynamic global challenges. Indonesia, through Bank Indonesia (BI), has demonstrated adaptive and proactive capabilities in maintaining macroeconomic stability, reflected in the maintained position of national foreign exchange reserves. This success not only demonstrates the effectiveness of monetary policy but also reflects the solid coordination between the government and monetary authorities in strengthening national economic resilience.
Indonesia’s foreign exchange reserves reached USD 152.6 billion at the end of June 2025, a slight increase compared to the previous month. Although the increase is not significant in nominal terms, it still sends a positive signal to the market. This increase was supported by state revenues from the tax and services sectors, as well as the government’s issuance of global debt securities. Furthermore, the current foreign exchange reserves are sufficient to finance 6.4 months of imports, or 6.2 months of imports and government foreign debt servicing. This figure far exceeds the international adequacy standard of around three months of imports.
The Head of Bank Indonesia’s Communications Department, Ramdan Denny Prakoso, stated that an adequate level of foreign exchange reserves is vital to maintaining macroeconomic stability and supporting the national financial system. This position also strengthens Indonesia’s external resilience amid ongoing global uncertainty. Stable foreign exchange reserves not only maintain the continuity of international transactions but also provide a sense of security for businesses and foreign investors, who view Indonesia as a country with a stable and promising investment climate.
Strong foreign exchange resilience is inseparable from a measured and responsive monetary policy strategy. Deputy Governor of Bank Indonesia, Filianingsih Hendarta, emphasized that BI continues to implement a forward-looking and preemptive approach to maintaining financial system stability and supporting sustainable economic growth. This approach is supported by a policy mix that adapts to global changes, such as the implementation of scenario-based simulations to anticipate the risk of global spillovers to the domestic economy.
Furthermore, Filianingsih explained that BI is also strengthening coordination with the Financial System Stability Committee (KSSK) to ensure policy synergy in responding to various economic dynamics. These efforts are also supported by financial market deepening, strengthened regional cooperation, and clear and consistent policy communication. All of this aims to maintain market expectations while strengthening the credibility of monetary policy.
Externally, global factors also contributed positively. Bank Mandiri Chief Economist, Andry Asmoro, highlighted that the relative calm in global markets was a supporting factor in the strengthening of the rupiah exchange rate and the increase in foreign exchange reserves. Although global trade tensions have not yet fully subsided, bilateral agreements between the United States and several countries, such as Vietnam and the United Kingdom, have provided positive momentum for market sentiment. This situation has also increased investor interest in financial instruments in developing countries, including Indonesia.
Andry also noted that investor interest in Indonesian securities is showing a positive trend, as reflected in stable foreign capital inflows. This has the potential to reduce capital outflow pressure and strengthen the capital and financial account balance. In his view, if this trend continues, national foreign exchange reserves have the potential to increase to around USD 155-160 billion by the end of 2025. He emphasized that responsive monetary policy support will be key to successfully maintaining economic stability going forward.
Furthermore, Bank Indonesia’s steps to expand international cooperation, including with BRICS countries, demonstrate its commitment to strengthening the global financial safety net. Initiatives to explore cooperation in payment systems, sustainable financing, and cybersecurity strengthen the resilience of Indonesia’s financial sector amidst increasing global digital and geopolitical risks.
Bank Indonesia’s actions demonstrate that the stability of foreign exchange reserves is not the result of a single policy, but rather the result of structured and planned synergy between fiscal and monetary policies and international cooperation. Despite challenges such as the global economic slowdown and fluctuating commodity prices, BI’s measured actions provide confidence that Indonesia has a solid economic foundation and is resilient to external shocks.
Going forward, the government and monetary authorities will continue to strive to maintain the continuity of this proven effective policy direction. Strengthening cross-sectoral coordination and improving the quality of communication among
