Throughout 2023 Indonesia's Payment Balance Surplus 6.3 Billion US Dollars, This Is The Support

Illustration. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) revealed that the overall Indonesia Payment Balance (NPI) in 2023 posted a surplus of 6.3 billion US dollars, an increase from the previous year which recorded a surplus of 4.0 billion US dollars.

Executive Director, Head of the BI Communication Department Erwin Haryono conveyed that the overall development of the NPI in 2023 shows strong external sector resilience amid the high global economic uncertainty.

"The overall NPI in 2023 posted a surplus of 6.3 billion US dollars, an increase from the previous year which recorded a surplus of 4.0 billion US dollars, mainly supported by the strong performance of capital and financial transactions," he explained in an official statement, Thursday, February 22.

Erwin said that the current transaction in 2023 recorded a controlled deficit of 1.6 billion US dollars or 0.1 percent of GDP, after posting a surplus of 13.2 billion US dollars or 1.0 percent of GDP in 2022.

According to Erwin, this development was influenced by a decrease in the balance surplus of goods trading, along with the global economic slowdown and the decline in commodity prices, as well as strong domestic demand.

On the other hand, the service balance deficit decreased in line with the increase in the number of foreign tourists in line with the ongoing recovery of the tourism sector.

Meanwhile, capital and financial transactions in 2023 recorded significant improvements by posting a surplus of USD 8.7 billion, compared to the USD 8.7 billion deficit in 2022, supported by a direct investment surplus and portfolio investment amid the high uncertainty of global financial markets.

Meanwhile, the position of foreign exchange reserves at the end of December 2023 rose to USD 146.4 billion from USD 137.2 billion at the end of December 2022.

The position of foreign exchange reserves is equivalent to financing 6.5 months of imports and government foreign debt, and is above the international adequacy standard of about 3 months of imports.

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.