(April 14): Indonesia’s foreign exchange reserves gained US$2.6 billion (RM11.5 billion) last month to reach another record high even as the global markets turmoil battered the rupiah.

The stockpile climbed to US$157.1 billion in March, Bank Indonesia said in a statement on Monday, adding that tax and service revenues as well as the withdrawal of the government’s foreign loans boosted reserves.

Indonesia also required exporters of natural resources to keep 100% of their dollar-denominated earnings onshore for at least a year, starting last month.

The rise in the FX war chest provides additional support for the monetary authority to defend a currency hard hit by multiple factors this year, including US President Donald Trump’s tariff salvo. The currency last week fell to its weakest level ever against the dollar, surpassing a low point set in the 1998 Asian financial crisis.

“We anticipate that external pressures could arise from growing global uncertainty,” PT Bank Mandiri analysts including Andry Asmoro wrote in a note. Markets’ reversal to a risk-off mode due to the rising tensions could increase capital outflows risk that could eventually pressure the reserves.

Still, the analysts expected FX reserves to hover within the range of US$155 billion to US$160 billion by the year-end, supported by Indonesia’s steady trade surplus, particularly from the exports of coal, palm oil and base metals.

The rupiah gained as much as 0.2% to 16,755 against the dollar in intraday trading on Monday. The currency has lost almost 4% so far this year, tailing its Asian peers.

Domestic concerns, such as the fiscal outlook and slowing economic growth amid President Prabowo Subianto’s shuffling of policy priorities, are also weighing on market sentiment. Indonesian stocks recorded their steepest intraday decline since 2011 in March, forcing the central bank to intervene heavily to stem the impact of the stock meltdown on the rupiah.

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