LABUAN BAJO. Bank Indonesia (BI) predicts that Indonesia's current account deficit will drop to 2.7% of the GDP in 2019 from 2.9% last year.
A current account reflects a country's transaction of goods and services. A current account deficit means that revenue from export of goods and services is lower than import.
"Overall, the 2019 CAD will be better at below 3% of the GDP or around 2.7%," said Executive Director of BI's Department of Economy and Monetary Policy Endy Dwi Tjahjono at the BI Journalists' Training in West Manggarai, East Nusa Tenggara as quoted by CNN Indonesia, Monday (9/12).
Meanwhile, Indonesia's balance of payment is predicted to record a US$ 1.5 billion surplus throughout the year, better than last year's deficit of US$ 7.1 billion.
According to Mr Tjahjono, the positive prospect is supported by several factors including the mandatory B20 programme. (AM/MS)