Bank of Indonesia published an update from its Annual Investment Forum (FIT) 2026 international seminar outlining a new investment paradigm for managing foreign exchange reserves that is intended to be more adaptive and prudent amid heightened global uncertainty and financial market volatility, supported by the use of relevant technology. Deputy Governor Aida S. Budiman linked the shift in reserve management to supporting exchange rate stability and external sector resilience, alongside a broader economic transformation policy mix built around five strategic synergies: macroeconomic and financial system stability, acceleration of industrial downstreaming, strengthening of the people’s economy, increased financing and financial market development, and accelerated digitalisation of the national economy and finance supported by bilateral and regional cooperation. Reserve management will continue to take into account global interest rate developments, the US dollar exchange rate, and US government bond yields, alongside Bank Indonesia’s ongoing policy mix across monetary, macroprudential, payment systems, and development of micro, small and medium-sized enterprises and the sharia economy. The seminar took place in Bali on 29–30 January 2026 and was attended by international financial institutions, international custodians and counterparties, banks, and the Indonesia Deposit Insurance Corporation, with the FIT programme also including discussions with other central banks on strengthening international financial cooperation.
Bank Indonesia 2026-01-29
Bank of Indonesia sets out a more adaptive and prudent foreign exchange reserve management approach under a new investment paradigm
Bank of Indonesia's Annual Investment Forum 2026 introduced a new investment paradigm for managing foreign exchange reserves, emphasizing adaptability and prudence amid global uncertainty, supported by technology. Deputy Governor Aida S. Budiman highlighted its role in exchange rate stability and economic transformation, focusing on synergies in macroeconomic stability, industrial downstreaming, financial market development, and digitalization.