Figure 1: Indonesia’s external sector vulnerabilities are being tested
A. The rupiah was among the hardest-hit but has recovered considerably
Exchange rates v USD; 20 Jan 2020 = 100
70758085909510010520-Jan03-Feb17-Feb02-Mar16-Mar30-Mar13-Apr27-Apr11-May25-May08-Jun
  • Indonesia
  • Non-Asia emerging economies
  • Other Emerging Asia
B. Hard currency reserves remain adequate relative to annual gross financing needs
USD billions, ratio = 1 considered adequate
02550751001251500.00.51.01.52.02.53.0201220132014201520162017201820192020
  • Short-term external debt
  • CA deficit (rollling annual)
  • Foreign exchange reserves
  • Reserve adequacy ratio (RHS)
C. Overseas debt has grown, but is still largely manageable
External debt, USD billions
0501001502002503003504004502008201020122014201620182020
  • Financial institutions
  • Government
  • Private NFCs
  • State-owned NFCs
D. Foreign holdings of Indonesian securities a potential source of outflows
Liabilities to non-residents, USD billions
050100150200250300201420152016201720182019
  • Equity securities
  • Government rupiah bonds
  • Other debt securities
1/ Other Emerging Asia: includes China, India, Philippines, Thailand, & Malaysia.
2/ Non-Asia emerging economies includes: Argentina, Brazil, Mexico, Russia, South Africa, & Turkey.
3/ NFCs = Non-financial corporations.
Source: Central Statistics Agency, Bank Indonesia, CEIC Data, author’s calculations