Indonesia's current-account deficit widened in the third quarter to its largest since the second quarter of 2014, data from the central bank showed on Friday. (Reuters Photo/Jose Luis Gonzalez)

Indonesia's Current-Account Deficit Widens to 3.37% of GDP in Third Quarter

BY :NILUFAR RIZKI AND GAYATRI SUROYO

NOVEMBER 12, 2018

Jakarta. Indonesia's current-account deficit widened in the third quarter to its largest since the second quarter of 2014, data from the central bank showed on Friday.

The deficit in the country's trade in goods and services with the rest of the world was $8.8 billion, or 3.37 percent of gross domestic product, in July-September, Bank Indonesia said.

In the second quarter, the current-account gap was equal to 3.02 percent of GDP, according to revised data.

The balance of payments, representing all transactions with foreign counterparts, posted a deficit of $4.4 billion in the third quarter, reflecting portfolio outflows.

Southeast Asia's largest economy posted a balance of payments deficit of $4.3 billion in April-June.

The rupiah was under pressure most of this year until early October, as foreign investors reduced their risky asset holdings due to rising US interest rates and the US-China trade war.

Investors have returned to buy Indonesian assets in the final quarter of 2018 as global trade tension eases. Strong inflows in November have sent the rupiah last week to its strongest level since August.

Reuters

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