- Bank Indonesia’s foreign reserves stood at USD 136.4 Bn by the end of last month, a decline of USD 2.4 Bn from April, primarily driven by government debt payments.
- Capital markets remain precariously balanced on concerns of tapering by the Fed, of which uncertainties remain due to the mixed signals coming out of the US labor market.
- Combined with risks associated with a recovery in imports as well as maturing government and SOE debt for the year, BI is likely to continue holding a wait and see posture for the coming months.
