BI Estimates Indonesia's Running Transactions To Experience A Deficit Of 0.9 Percent In 2024

Bank Indonesia (Photo: Antara)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo estimates that the 2024 Indonesia Payment Balance (NPI) will experience a low current account deficit (CAD) in the range of 0.1 percent to 0.9 percent of Gross Domestic Product (GDP).

Perry said that the current account deficit was influenced by the trade balance surplus which began to shrink.

According to Perry, the current account deficit in the second quarter of 2024 is predicted to be low, driven by an increase in the trade balance surplus of goods recorded at 8.0 billion US dollars.

"Capital and financial transactions are predicted to record a surplus amid the high uncertainty of the global financial market. Portfolio investment in the second quarter of 2024 is predicted to record net inflows of US$4.3 billion," he explained at a press conference, Wednesday, July 17.

Therefore, Perry said that this would continue in the beginning of the third quarter of 2024 and until July 15, 2024, recorded net inflows of US$4.4 billion.

Meanwhile, the position of Indonesia's foreign exchange reserves at the end of June 2024 increased to US$14.2 billion, equivalent to financing 6.3 months of imports or 6.1 months of imports.

In addition, Perry conveyed that the Government's foreign debt payment was above the international adequacy standard of around 3 months of imports.

Perry 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's positive perception of the national economic outlook and attractive investment returns," he said.