Foreign exchange reserve (forex) of the Indonesian central bank, Bank Indonesia, reached record high in August as rupiah has been relatively stable against U.S. dollar amid high inflow of capitals.

The central bank revealed on Friday that its forex reserve rose to 128.8 billion U.S. dollars at the end of August from 127.8 billion dollars at the end of July.

"The position of our foreign exchange reserve is good," deputy governor of Bank Indonesia Mirza Adityaswara said.

Relatively good foreign trade performance and credit rating upgrade from S&P Global rating to investment grade in May amid sound macro-economic fundamentals and U.S. dollar's depreciation have helped lure capital inflows.