BI Records NPI Second Quarter 2024 Alami Deficit Of 0.6 Billion US Dollars

JAKARTA Bank Indonesia (BI) noted that the performance of the Indonesia Payment Balance (NPI) in the second quarter of 2024 showed improvement with a natural deficit of 0.6 billion US dollars, lower than the deficit of 6.0 billion US dollars in the first quarter of 2024.

Assistant Governor of the BI Communication Department Erwin Haryono said the improvement was supported by an increase in the performance of capital and financial transactions which recorded a surplus and a maintained account deficit.

"Dengan perkembangan tersebut, posisi cadangan devisa pada akhir Juni tercatat tetap tinggi sebesar 140,2 miliar dolar AS, atau setara dengan pembiayaan 6,2 bulan impor dan pembayaran utang luar luar negeri pemerintah, serta berada di atas standar kepuasan internasional sekitar 3 bulan impor," jelasnya, Kamis, 22 Agustus.

As for the second quarter of 2024, current transactions recorded a deficit of 3 billion US dollars or 0.9 percent of GDP, slightly higher than the deficit of 2.4 billion US dollars or 0.7 percent of GDP in the first quarter of 2024.

Erwin conveyed that the trade balance surplus in goods was increased, contributed by a declining oil and gas trade balance deficit and a relatively stable non-oil and gas trade balance surplus.

In addition, Erwin said that non-oil and gas exports grew positively supported by improvements in commodity prices and demand from major trading partners, while non-oil and gas imports were relatively stable influenced by maintained domestic economic activity.

According to Erwin, the balance of services deficit has increased, influenced by the travel service deficit (travel) in line with the implementation of the 2024 Hajj pilgrimage.

"The primary income balance deficit is also higher influenced by dividend payments and interest/coupons according to the quarterly pattern," he said.

Erwin explained, the performance of capital and financial transactions has improved amid the high uncertainty of global financial markets.

Capital and financial transactions recorded a surplus of 2.7 billion US dollars in the second quarter of 2024, from the previous deficit of 1.6 billion US dollars in the first quarter of 2024.

"This positive performance is mainly supported by foreign capital inflows in portfolio investments amidst the uncertainty of the global financial market which is still high," he said.

Erwin said that direct investment still posted a surplus in line with investor optimism for the economic outlook and a maintained domestic investment climate.

Other investments noted that the decline in the deficit was influenced by a decrease in private investment in several foreign financial instruments, amid an increase in payments to private foreign debt as scheduled.

In the future, Erwin said that Bank Indonesia will always pay close attention to the dynamics of the global economy that can affect the prospects for NPI and continue to strengthen the response of policy mixes supported by close policy synergies with the Government and relevant authorities to strengthen the resilience of the external sector.

"NPI 2024 is predicted to be maintained with transactions running in the low deficit range of 0.1 percent to 0.9 percent of GDP," he said.

Erwin said that the balance of capital and financial transactions is predicted to continue to record a surplus, supported by an increase in foreign capital inflows, both in the form of Foreign Investment (PMA) and portfolio investments in line with investor positive perceptions of the national economic prospects and attractive investment returns.