Indonesia's Balance of Payment, Current Account Deficit Shrink in Q2: Central Bank
Jakarta. Indonesia's balance of payment swung to a $2.2 billion surplus in the second quarter, compared to a $0.3 billion deficit in the previous quarter on the back of lower current account deficit and an increase in capital and financial accounts surplus, a statement from Bank Indonesia said on Friday (12/06).
"The balance of payment surplus, in turn, will strengthen foreign exchange reserves," the statement said, noting that Indonesia's forex reserve increased 2.14 percent to $109.8 billion at the end of June.
Indonesia's current account deficit dropped to $4.7 billion in the second quarter, or equal to 2 percent of the gross domestic product, on the back of higher non-oil and gas trade balance surplus.
Bank Indonesia, the central bank, revised the current account deficit for the first quarter to $4.8 billion or 2.2 percent of GDP. It previously reported a 2.1 percent deficit for the period.
According to Bank Indonesia, the country's capital and financial accounts surplus reached $7.4 billion as of the end of June, up from a $4.6 billion surplus in the previous quarter on the back of abundant capital inflows in bonds and stock market.
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