No. 28/21/DKom
Against a backdrop of increasing global uncertainty and financial market volatility, Indonesia is still viewed as having a solid and attractive investment outlook, coupled with the potential for higher growth in 2026-2027. Optimism is underpinned, among others, by adopting a new investment paradigm in managing foreign reserves in accordance with sustainable economic growth. International reserve management by Bank Indonesia is adaptive and prudent, supported by the application of relevant technologies to strengthen investor confidence and maintain sustainable growth amid global dynamics. That was the key takeaway of the opening ceremony of the Bank Indonesia Annual Investment Forum (FIT) 2026, entitled Beyond the Old Playbook: Embracing a New Paradigm in Global Investment, held on 29-30th January 2026, in Bali.
The Deputy Governor of Bank Indonesia, Aida S. Budiman, explained how the application of a new paradigm in foreign reserve management supports transformative national policy synergy through stable exchange rates as well as external sector resilience. Maintaining stability and accelerating growth, Bank Indonesia has strengthened its economic transformation policy mix through five strategic synergies, namely macroeconomic and financial system stability, accelerating industrial downstreaming, strengthening the people's economy, increasing financial market and economic financing, as well as accelerating national economic and financial digitalisation, supported by bilateral and regional cooperation. “These synergies reflect a shared vision and targeted policy response to drive national economic transformation, which must be strengthened further moving forward," emphasised Deputy Governor Aida.
Complementing national policy synergy, Bank Indonesia continues to implement its monetary, macroprudential and payment system policy mix, coupled with MSME and sharia economic development to maintain stability in pursuit of inclusive and sustainable economic growth. Confronting global conditions replete with heightened uncertainty, Bank Indonesia is managing foreign reserves prudently as a buffer for economic stability. Bank Indonesia continues to manage international reserves taking into account developments in global interest rates, US dollar exchange rates and UST yields to maintain market confidence and national economic stability.
Echoing those sentiments, the Global Head of Asset Allocation at Invesco, Paul Jackson, confirmed that Indonesia's economy continues to indicate relatively solid resilience. He added that prudent foreign reserve management, coupled with a more adaptive investment approach, is key to maintaining stability amid global volatility.
The international seminar, part of the Annual Investment Forum (FIT) 2026 series, highlighted the role played by foreign reserves as an economic buffer alongside the need for a new paradigm in global investment amid elevated uncertainty. The seminar was attended by representatives from international financial institutions, custodian institutions and international counterparties, the banking industry as well as the Indonesia Deposit Insurance Corporation (LPS). The FIT 2026 series continued with discussions among central bankers from various jurisdictions on strengthening international financial cooperation, among others, which is expected to bolster external resilience in Indonesia as an effort to mitigate the impact of global uncertainty.
With a new paradigm of adaptive and prudent foreign reserve management, Bank Indonesia constantly strives to maintain adequate international reserves to safeguard national economic stability. National policy synergy and international cooperation will be strengthened moving forward to ensure the benefits of economic growth are shared more inclusively and sustainably.
Jakarta, 29th January 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
