Indonesia reserves fall to $144.9 billion as rupiah hits new low
Why it matters: The fifth straight monthly drop came as Bank Indonesia spent reserves to support the currency and bond market.
Indonesia’s foreign-exchange reserves fell for a fifth straight month in May to $144.9 billion, the longest stretch of declines since 2018, as policymakers tried to steady the rupiah after it slid to a fresh record low against the US dollar. Bank Indonesia attributed the drop to external debt payments by the government and central bank steps to stabilize the currency during volatile global markets. The rupiah was down 0.7% on Monday, while Indonesia’s 10-year bond yield climbed 26 basis points to 7.14%, its highest level since April 2025. The benchmark stock index was off 2.5%. Bank Indonesia said the reserves still covered 5.5 months of imports and foreign-debt servicing, a level it described as adequate for external stability.