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Premier Insight : Official foreign reserve as of Nov18 was US$117.2bn,
Monday, December 10, 2018       10:38 WIB

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Foreign reserve: Official foreign reserve as of Nov18 was US$117.2bn, an increase of 1.7% mom (-7% yoy) from Oct18's. Foreign reserve is now adequate to finance 6.5 months of import and 6.3 months of import and foreign debt servicing. Rising foreign reserve was due to oil and gas receipts and withdrawal of government external debt among others. (Bank Indonesia)
  
 Comment: The news implies positive development for external sustainability buffer, with neutral-positive impact for the market. This is the first time of increase this year as foreign reserve continuously depleted through the first 10 months; to note the negative reserve growth 'trough' had indeed taken place in Oct18, creating one-month lag in actual reserve increase. Moreover, global oil price was high in the first two weeks of Nov18 albeit declining towards month's end (by Nov18, Brent price +8.4% yoy), which may provide background for the increase in oil and gas receipt.  

Sumber : IPS RESEARCH

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