Bank Indonesia's foreign exchange reserves are $42 billion rising from $41.13 billion the previous month.

The reserve position has steadily improved since a drop of $4 billion to $40.11 billion took place in June 2006 at which time the central bank had pre-paid half of the country's remaining debt to the International Monetary Fund.

The central bank said its base money supply declined slightly to 250.05 trillion rupiah at the end of August from 251.14 trillion in July. Money in circulation fell to 145.77 trillion rupiah from 149.45 trillion.