JAKARTA - Bank Indonesia (BI) recorded that Indonesia's balance of payments posted a surplus of US$9.2 billion in the second quarter (Q2) of 2020. In the previous quarter, the balance of payments recorded a deficit of US$8.5 billion.
In addition, foreign exchange reserves at the end of June 2020 increased to US$131.7 billion, equivalent to the financing of 8.1 months of imports and government foreign debt and is above the international adequacy standard of three months of imports.
In an official statement received by IDNFinancials.com on Tuesday (18/8), BI said that in Q2 the current account deficit dropped from US$3.7 billion (1.4% of GDP) to US$2.9 billion (1.2% of GDP).
"The decline in the current account deficit stemmed from the goods trade balance surplus due to lower imports due to weakening domestic demand," said BI.
Additionally, capital and financial transactions in Q2 posted a surplus of US$10.5 billion. The surplus was mainly derived from net inflows of portfolio investment and direct investment, with increased portfolio investment inflows in the form of global bond issuances by the government and corporations and purchases of Government Securities.
"Going forward, Bank Indonesia will keep a close watch on the dynamics of the global economy that could affect the prospects for the balance of payments and continue to strengthen the policy mix in order to maintain economic stability, as well as strengthen policy coordination with the government and related authorities to strengthen the resilience of the external sector," BI wrote. (MS)