Indonesia Forex Reserves Edge Down to US$146.3 Billion in September
Bank Indonesia's foreign exchange holdings saw a slight dip last month as the central bank continued rupiah stabilisation efforts, maintaining import cover above international benchmarks.
Reserves Decline Amidst Stabilisation
Bank Indonesia (BI) reported a marginal reduction in its foreign exchange reserves for September 2026. Holdings reached US$146.3 billion, a slight decrease from US$146.5 billion recorded in August 2026. In a statement on Wednesday, BI attributed this dip to its active rupiah exchange rate stabilisation policy.
This intervention aimed to counter persistent global financial market uncertainties, according to BI spokesperson Ramdan Denny Prakoso. The September figure extends a period of flatlining reserves since June 2026, following five consecutive months of decline earlier in the year.
Adequacy and External Resilience
Despite the recent decline, BI stated that the current reserve level remains sufficient. The US$146.3 billion total provides cover for 5.3 months of imports, exceeding the international adequacy standard of approximately three months. Ramdan Denny Prakoso highlighted that these reserves are viewed by BI as adequate to support the external sector's resilience. Furthermore, they contribute to maintaining macroeconomic and financial system stability within Indonesia.
Rupiah's Volatile Year
The rupiah experienced considerable volatility throughout the first half of 2026. Initial pressures arose from fiscal concerns, driven by a significant budget deficit in 2025. The currency faced further scrutiny in early February 2026, following the appointment of Thomas Djiwandono as BI deputy governor, which prompted questions regarding the central bank's independence.
Geopolitical tensions in the Middle East, specifically the United States and Israel's actions against Iran on 28 February 2026, added significant pressure to the rupiah.
Bank Indonesia's continued use of reserves demonstrates its commitment to managing rupiah fluctuations. While drawing down holdings, the central bank has ensured they remain well above recommended international thresholds. The sustained volatility underscores the ongoing challenges from both domestic and international factors.
Market participants will look to BI's next monetary policy meeting, scheduled for late October 2026, for further indications of its currency management approach and any adjustments to monetary policy.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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