NPI Performance Improves, BI Says Indonesia’s Foreign Exchange Reserves Remain High

REPUBLIKA.CO.ID, JAKARTA — Bank Indonesia (BI) revealed that Indonesia’s Balance of Payments (NPI) performance in the third quarter of 2023 improved. This performance was achieved amidst increasing uncertainty in the global economy.

“NPI in the third quarter of 2023 showed significant improvement by recording a deficit of 1.5 billion US dollars,” said BI Communications Department Executive Director Erwin Haryono in a written statement, Tuesday (21/21/2023).

He said that the NPI deficit in the third quarter was lower than the deficit in the previous quarter of 7.4 billion US dollars. This condition was supported by a current account deficit and improving capital and financial transactions.

With these developments, Erwin said, the position of foreign exchange reserves at the end of September remained high at 134.9 billion US dollars. This figure is equivalent to financing 6 months of imports and paying off government foreign debt.

“The position of foreign exchange reserves at the end of September 2023 is above the international adequacy standard of around three months of imports,” said Erwin.

Bank Indonesia assesses that the good NPI performance in the third quarter of 2023 is able to continue to support Indonesia’s external resilience. Going forward, he ensured that Bank Indonesia would always pay close attention to global economic dynamics that could influence the NPI outlook.

“BI continues to strengthen its policy mix response which is supported by close policy synergy with the Government and related authorities to strengthen the resilience of the external sector,” said Erwin.

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