Indonesia’s foreign exchange reserves rose to USD 146.5 billion in August from USD 145.3 billion in July, reaching a five-month high and supporting the rupiah, which remained below IDR 17,700 per U.S. dollar for a third consecutive session on Monday. The currency hovered around IDR 17,650 as stronger external buffers and signs of fiscal prudence improved sentiment. Higher tax and services receipts, along with government withdrawals of external loans, more than offset external debt repayments and Bank Indonesia’s Rupiah stabilisation measures. The reserve stock covered 5.4 months of imports, or 5.3 months including government external debt servicing, compared with the international adequacy standard of around three months of imports. Bank Indonesia Governor Destry Damayanti said domestic inflation remained under control and called for closer coordination among the government, central bank and businesses to support growth. The government’s plan to reduce the 2027 fiscal deficit to 2.4% of GDP from 2.68% this year also reinforced expectations of tighter fiscal management. Globally, the dollar index steadied ahead of U.S. inflation data after recently rebounding on strong jobs data that bolstered expectations of a Fed rate hike in September. Investors are also awaiting Indonesia’s August consumer-confidence and July retail-sales data later this week.