Bank Indonesia Estimates NPI 2024 Deficit

JAKARTA - Bank Indonesia (BI) estimates that the 2024 Indonesia Payment Balance (NPI) will be maintained with transactions running in the low deficit range of 0.1 percent to 0.9 percent of GDP.

Governor of Bank Indonesia (BI) Perry Warjiyo revealed that the balance of capital and financial transactions is predicted to continue to record a surplus supported by an increase in foreign capital inflows.

"In line with the easing of global financial market uncertainty and the investor's positive perception of the national economic outlook and attractive investment returns," he explained in his statement, quoted on Sunday, May 26.

Perry said that the current account deficit in the first quarter of 2024 remained low, supported by the continuation of the trade balance surplus.

Meanwhile, the balance of capital and financial transactions in the first quarter of 2024 recorded a deficit, in line with the uncertainty of the global financial market.

Perry said that in the second quarter of 2024, it showed that the NPI had improved again, supported by the continued trade balance surplus in April 2024 of US$3.6 billion, supported by non-oil and gas exports.

Meanwhile, the entry flow of portfolio investments was again positive in the second quarter of 2024 (until May 20, 2024) net recorded at 1.8 billion US dollars driven by the positive impact of the response of Bank Indonesia's monetary policy mix.

"The position of Indonesia's foreign exchange reserves at the end of April 2024 remains high at 136.2 billion US dollars, equivalent to financing 6.1 months of imports or 6.0 months of imports and payment of government foreign debt, and is above the international adequacy standard of around 3 months of imports," he said.