ASIATODAY.ID, JAKARTA – Indonesia’s foreign exchange reserves continued to strengthen at the end of 2025, signaling improving external stability. However, the country still lags far behind Singapore and Thailand in the ASEAN regional ranking.
Bank Indonesia (BI) reported that Indonesia’s foreign exchange reserves stood at US$156.5 billion as of the end of December 2025, up from US$150.1 billion in November.
The increase reflects stronger government revenues and improved access to global financing, but it has not been enough to elevate Indonesia into the top tier of ASEAN reserve holders.
According to Ramdan Denny Prakoso, Executive Director of Bank Indonesia’s Communications Department, the rise in reserves was driven by several key factors.
“The increase in foreign exchange reserves was mainly supported by tax and services revenues, the issuance of global sovereign sukuk, and government external borrowing,” Ramdan said on Thursday, January 8, 2026.
Bank Indonesia emphasized that the current level of reserves is equivalent to 6.4 months of imports, or 6.3 months of imports plus government external debt servicing. This is well above the international adequacy standard of around three months of imports.
The reserve position provides Indonesia with sufficient buffers to maintain rupiah stability, meet external obligations, and mitigate risks arising from global financial volatility.
Singapore Far Ahead
Despite the improvement, Indonesia’s reserves remain significantly lower than those of Singapore, which recorded foreign exchange reserves of US$409.27 billion in December 2025, up from approximately US$400 billion in the previous month.
The substantial figure underscores Singapore’s strong financial resilience and dominant liquidity position within ASEAN.
Thailand Still Stronger
Official data for Thailand’s December 2025 reserves have yet to be released. However, based on November 2025 figures, Thailand’s reserves stood at around US$275 billion, far exceeding Indonesia’s level and reinforcing its stronger external position.
Indonesia in the Middle of ASEAN
Regionally, Indonesia still outperforms the Philippines, whose foreign exchange reserves reached US$110.9 billion at the end of December 2025—equivalent to 7.4 months of imports, well above international adequacy benchmarks.
Meanwhile, Malaysia’s reserves were recorded at US$124.12 billion as of November 2025, placing it below Indonesia.
Overall, Indonesia’s foreign exchange reserves position places the country firmly in the middle tier of ASEAN, neither leading nor trailing the region.
Strategic Role of Foreign Reserves
Foreign exchange reserves play a critical role for ASEAN economies, serving to:
– Stabilize exchange rates,
– Meet external debt obligations,
– Finance essential imports such as energy, food, and pharmaceuticals,
– Strengthen investor confidence, and
– Act as a buffer during periods of global economic stress.
In addition, adequate reserves enhance the effectiveness of monetary policy and reinforce regional economic resilience. (AT Network)
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