Bank Indonesia (BI) Governor Boediono said Friday that the central bank had cashed in U$3 billion in foreign loans to beef up the foreign exchange reserves, which as of Friday stood at $53.7 billion.
"The foreign exchange reserves have risen because the government cashed loans, and we use the cash to beef up the national foreign exchange reserves. Today, the foreign exchange reserves stand at $53.7 billion," the central bank chief said as quoted by Antara news agency.
Boediono said BI was at present in the process of completing a Bilateral Swap Arrangement (BSA) with Japan to strengthen the country's foreign exchange reserves.
"I think we are still trying to negotiate its articles. The agreement will be ready in the near future. It's just an administrative matter," he said.
The BSA is worth $12 billion, or up 100 percent from the previous one which was only US$6 billion.
In the future, Indonesia's foreign exchange reserves would also get support from disbursements of stand-by loans the government has obtained worth $5.5 billion.
BI was currently waiting for the schedule for the stand-by loan disbursements.
Boediono said the foreign exchange reserves were adequate to support the rupiah's stability and meet the need for the US greenback domestically.
"The stand-by loan and the BSA swap that we are getting, I think they are enough," he said.
The rupiah on Friday morning traded at Rp12,140/12,165 per US dollar, down 20 points from RP12,120/12,130 in the market's close a day earlier.
However, the local currency on Friday noon rose Rp70 points to Rp12,030 from Rp12,100 in the market's close on the previous day.
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