Indonesia’s external economic resilience has been maintained against a backdrop of global economic moderation, according to Indonesia’s Balance of Payment (BOP) in Q3/2019. The BOP improved by recording a deficit of US$46 million in Q3/2019, significantly reduced from a deficit of $2.0 billion in the previous quarter, Executive Director of the BI Communication Department, Onny Widjanarko said in a statement received in Jakarta, Friday.
The Solid BOP performance was supported by a lower current account deficit coupled with higher capital and a financial account surplus, Widjanarko remarked as reported by Antara News Agency.
Consequently, the position of the official reserve assets stood at $124.3 billion at the end of September 2019, increasing from $123.8 billion at the end of June 2019.
The position of the official reserve assets was equivalent to financing 7.2 months of imports or 6.9 months of imports and servicing the government’s external debt, which is well above the international adequacy standard of three months of imports.
The current account deficit had narrowed, supported by a lower oil and gas trade deficit amidst a stable non-oil and gas trade surplus.
The current account deficit decreased from $8.2 billion (2.9 of GDP) in Q2/2019 to $7.7 billion (2.7 percent of GDP) in Q3/2019, Onny Widjanarko said.
The better performance of the current account was attributed to an upturn in the goods trade surplus linked to the lower oil and gas trade deficit, amidst the stable non-oil and gas trade surplus.
The oil and gas trade deficit narrowed with declining imports, in line with the positive impact of import control policies, including the B-20 program, he stated.
Meanwhile, non-oil and gas trade surplus were relatively stable amidst a weakening global economy and declining export commodity prices.
Improvement in the current account deficit was also backed by a decrease in the primary income deficit due to smaller dividends repatriation and service interest payments on external debts.
(source: Antara News Agency)