BI Optimistic Foreign Reserves Will Reach US$50 Billion

Thursday, 26 April, 2007 | 15:27 WIB

TEMPO Interactive, Jakarta: Bank Indonesia (BI) is optimistic that foreign reserves will hit US$50 billion by the middle of this year.

“Should economic stability continue as it is now, this will be achieved,” said Rasmo Samiun, Director of BI’s Directorate of Foreign Reserve Management at after a National Convention on the Draft of Indonesia National Working Competence Standards yesterday (04/25) in Jakarta.

He explained that the country's foreign reserves had already reached US$49.4 billion, a US$2.2 billion increase compared to last March.

The highest contribution came from oil revenues and capital inflows to the domestic market.

Foreign markets are now extremely interested in the condition of the Indonesian economy, especially as regards the financial sector.

The reason for this is that Indonesian interest rates are still higher than other Asian countries.

“So, the return on our bonds is evaluated as higher.

Likewise, financial market too,” said Rasmo.

He said that the larger the foreign reserve, the higher the confidence in the domestic economy.

AGOENG WIJAYA