Indonesia's Balance Of Payments Has A Surplus Of 2.6 Billion US Dollars Throughout 2020

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - Bank Indonesia (BI) reported that Indonesia's balance of payments (NPI) during the 2020 period had a surplus of US $ 2.6 billion or the equivalent of IDR 36.4 trillion (exchange rate of IDR 14,000).

Head of the BI Communication Department Erwin Haryono said the positive achievement of the balance of payments was supported by the current account surplus that continued amidst low deficit capital and financial transactions.

"Indonesia's balance of payments remains in good condition, thus supporting external resilience," he said in a press statement, Friday, February 19.

Erwin noted, last year's achievement continued to achieve a surplus in 2019 of 4.7 billion US dollars.

This development was driven by a decrease in the current account deficit and a surplus in the capital and financial account.

The current account deficit in 2020 was US $ 4.7 billion (0.4 percent of GDP), much lower than the deficit in 2019 of US $ 30.3 billion (2.7 percent of GDP).

"The decrease in the deficit is in line with the limited export performance due to weakening demand from trading partner countries, coupled with imports which were also restrained due to weak domestic demand," he said.

Meanwhile, the capital and financial account in 2020 will remain a surplus of 7.9 billion US dollars in line with investor optimism about the domestic economic recovery which was maintained and uncertainty on global financial markets eased, especially in the second semester of 2020.

"Through stabilization and strengthening of Bank Indonesia's policy mix, and close coordination with the government and the Financial Services Authority (OJK), we will continue to encourage foreign capital inflows to the domestic financial market," he explained.

In the future, Bank Indonesia, said Erwin, will continue to pay close attention to the dynamics of the global economy that may affect the prospects for the balance of payments.

"The monetary authority is ready to strengthen the policy mix in order to maintain economic stability, as well as strengthen policy coordination with the Government and related authorities to support the resilience of the external sector," he concluded.