photo source : kontan.co.id

The Central Bank of Indonesia announced the country’s official reserve asset position as of end-July 2014 reached US$110.5 billion, up from the end of June 2014 level amounted to US$107.7 billion.

Their press release published at August 08′ 2014, mentioned that the increasing reserves were mainly attributable to receipts of the Euro Bonds issued by Government and Government’s oil and gas export proceeds that exceed the needs of Government foreign debt payments.

In addition, increased foreign exchange receipts resulted from buoyant foreign capital inflows has also a positive impact on the accumulation of the official reserve assets at the end of July 2014.

Official reserve assets at the end of July can adequately cover 6.4 months of imports or 6.2 months of imports and servicing of government external debt repayment, well above the international standards of reserves adequacy at 3 months of imports.

The release signed by Tirta Segara, the Executive Director of Bank Indonesia Communication Department, also stressing that the central bank considers the burgeoning position of official reserve assets have positive impact on efforts to strengthen the resilience of the external sector and maintain the sustainability of Indonesian economic growth.