Indonesia`s Balance of Payment Turns Surplus in 2016

Bank Indonesia Governor Agus Martowardojo.

Jakarta, 12 Jumadil Awwal 1438/09 February 2017 (MINA) – Indonesias balance of payment has turned into a surplus of US$12 billion in 2016 after suffering a deficit of US$1.1 billion in 2015.

“(It happened) due to the support from strong funds resulting from the balance of financial and capital transactions,” antara quoted Bank Indonesia (BI) Governor Agus Martowardojo as saying here on Wednesday.

Balance of payment is an indicator of the economic transactions between the people of Indonesia and people abroad.

The balance of payment records data of current transactions, capital and financial transactions of the Indonesian people.

The continuing trend of trade surplus and capital repatriation from the tax amnesty program have been among the factors that that have contributed to the surplus of the balance of payment, he stated.

Agus noted that in the fourth quarter of 2016, trade deficit dropped drastically to 0.8 percent of the GDP to make the current account deficit throughout 2016 to 1.8 percent of the GDP.

“In the fourth quarter, the current account deficit was a record, because it dropped 0.8 percent to make the deficit throughout the year to 1.8 percent of the GDP,” he said.

Entering economic recovery phase

Agus added that Indonesia would enter the economic recovery phase after being overshadowed by the economic slowdown caused by global uncertainty.

He added that the supporting factors for the recovery include increasing commodity prices, reviving private investment and improving performance of state-owned and private companies.

However, he warned that the global and domestic pressures, such as the uncertainty of the US Federal Reserves policy and political dynamic in advanced countries, still remained to be monitored closely.

He said Bank Indonesia predicted Indonesias economy to grow between 5.0 and 5.4 percent in 2017.

He said that a deficit in the balance of payment was only recorded in the first quarter of 2016, which was at $300 million, due to the negative impact of global economic slowdown in 2015.

In the second quarter of 2016, the balance of payment was in surplus of $2.2 billion, and in the third quarter it was more than $5.5 billion.  (T/RS05/RS01)

Mi’raj Islamic News Agency (MINA)