Executive Summary

Key insights and market outlook

Bank Indonesia reported that Indonesia's foreign reserves reached $156.5 billion by end-December 2025, a significant increase from $150.1 billion in November 2025. The rise was primarily driven by tax receipts, government global tax bond issuance, and government loan drawdowns ¹

²³. The reserves are equivalent to 6.4 months of imports and are above the international adequacy standard of 3 months of imports, supporting Indonesia's external sector resilience and macroeconomic stability ¹.

Full Analysis

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Deep Dive Analysis

Indonesia's Foreign Reserves Surge to $156.5 Billion by End-2025

Significant Increase in Foreign Reserves

Bank Indonesia (BI) reported that Indonesia's foreign reserves reached $156.5 billion by end-December 2025, marking a substantial increase from $150.1 billion in November 2025 ¹

²³. This rise was primarily driven by tax receipts and government services, global bond issuance by the government, and government loan drawdowns ¹³. The foreign reserves are equivalent to 6.4 months of imports or 6.3 months of imports and government external debt payments, exceeding the international adequacy standard of 3 months of imports ¹.

Factors Contributing to the Increase

The increase in foreign reserves was attributed to several key factors: tax receipts and government services, global bond issuance by the government, and government loan drawdowns ¹

³. These inflows have strengthened Indonesia's external position and enhanced its ability to meet international payment obligations. The reserves accumulation is seen as a positive indicator of Indonesia's economic fundamentals and investor confidence in the country's prospects ².

Implications for Economic Stability

BI views the current level of foreign reserves as supportive of external sector resilience and macroeconomic stability ¹

. The central bank projects that the adequate foreign reserve position and continued foreign capital inflows will persist, driven by positive investor sentiment towards Indonesia's economic prospects and attractive investment returns ². BI is committed to maintaining close coordination with the government to strengthen external resilience and ensure sustainable economic growth ².

Recent Trends in Foreign Reserves

The trend of increasing foreign reserves began in October 2025, following three consecutive months of decline ³

. The reserves have shown a steady improvement over the past few months, with values of $149.9 billion in October 2025 and $150.1 billion in November 2025 ³. Despite the increase, foreign reserves remain relatively stable compared to the same period last year, with only a 0.51% increase from $155.7 billion in December 2024 ³.

Monetary Developments and Liquidity

In related monetary developments, BI reported that the adjusted monetary base (M0) grew by 16.8% year-on-year in December 2025, reaching Rp2,367.8 trillion ²

. This growth was influenced by an increase in commercial bank deposits at BI and currency in circulation ². The government had previously injected Rp276 trillion into the banking system to ensure liquidity, of which Rp75 trillion was withdrawn for government spending ².