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
  • 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
  • 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
  • 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
  • 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