Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Economy  >>   Indonesia foreign reserves swell 21 percent
NEWS UPDATES Asean Affairs        28  May 2011

Indonesia foreign reserves swell 21 percent

Related Stories

May 18, 2011
Creative industry takes off in Indonesia

May 13, 2011
Indonesia retains rate

May 11, 2011
Indonesian mining law overhauled

May 4, 2011
Indonesia urged to stop fuel subsidies

April 27, 2011
Indonesia prepares for inflation

April 19, 2011
Indonesia’s economic development plan

April 13, 2011
Indonesia should hike rates soon 

The nation’s foreign exchange holdings have surged 21 percent this year as a result of continued investor appetite for Indonesian assets, the central bank announced on Friday.

“Our foreign exchange reserves as of May 20, 2011, were US$116.5 billion, and persistent overseas funds inflows into the country have helped the rupiah strengthen,” said Darmin Nasution, governor of Bank Indonesia. “The trend is still the same, the pressure is still for the rupiah to strengthen, although perhaps not as quickly as in past months.”

The currency has appreciated 4.6 percent this year, rising to 8,575 against the dollar as of Friday, while the Jakarta Composite Index has risen 3.5 percent.

Economists have said loose monetary policies to spur recovery in major developed economies such as the United States, Japan and Europe have prompted overseas funds to seek higher returns in emerging economies, including Indonesia.

But Darmin said the central bank was well aware that the flow of capital could reverse, causing a shock to the economy.

“We are always watching the effects of the crisis on the world economy,” he said. “But in essence, there is no need to worry. We’ve been preparing [for a reversal].”

The biggest target for foreign investors is Indonesian government bonds, with overseas holdings of the debt rising 15 percent this year to Rp 225.9 trillion ($26 billion) as of May 20, according to the Finance Ministry’s debt management office.

“If there are no interest rate raises in America and Europe, then the foreign reserve growth will likely last until the end of the year,” said Juniman, an economist at Bank Internasional Indonesia. Low interest rates in developed economies have kept down returns, making Indonesia with its 6.75 percent key rate especially attractive.

Economist also said Indonesia’s impressive growth, forecast at 6.5 percent this year from 6.1 percent in 2010, and a possible investment grade from rating agencies has also attracted investors to Indonesian assets.

Fitch lifted its credit outlook for country to positive from stable on Feb. 24 after upgraded Indonesia’s sovereign debt rating to BB+, one notch below investment grade, in January 2010.

Reaching investment grade would be a major success for the nation, allowing it to borrow more cheaply on international debt markets as well as further driving investor interest.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    28  May 2011 Subsribe Now !
• Indonesia foreign reserves swell 21 percent Subcribe: Asean Affairs Global Magazine
• Indonesia unveils 2025 Economic Plan Asean Affairs Premium
• Foreign investment must lead to job creation: UNDP
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Malaysian inflation seems manageable
• US to continue Myanmar sanctions

• Philippine central bank sees slower growth

 • Thai exports rise

 • Thailand moves toward biofuel

Asean Analysis    29  May 2011

Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events

Asean Stock Watch    27  May 2011

• Asean Stock Watch-May 27 p

Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand