JAKARTA – Indonesia Trade Balance suffers a massive deficit in Q2 2021, shifting from USD 4.1 billion in Q1 2021 to USD 0.4 billion. It results from the depleted current year transaction and financial and capital transactions.
In a press release published today (20/), Erwin Haryono, Executive Director and Head of Communication Division of Bank Indonesia (BI), reveals that this loss subsequently affects the foreign exchange reserves. As of June 2021, the reserves were reported at USD 137.1 billion, equivalent to the number reported in March 2021. “The said foreign exchange reserves is equal to 8.8 months of import and foreign debt payment; it is above the adequacy standard,” Haryono confirms.
In Q2 2021, the current year transaction deficit is reported to reach USD 2.2 billion, higher than USD 1.1 billion recorded in Q1 2021 as the goods balance surplus rises along with the export. In addition, there is also an increase in primary revenue balance deficit, driven by the increases in return of investment in the forms of dividends. Furthermore, the rise in the services balance deficit results from the transportation services deficit due to the imported goods freight services.
The financial and capital transactions still score a surplus of USD 1.9 billion, although much lower than USD 5.5 billion reported in Q1 2021. The surplus occurs due to the net inflows of direct investment that surge to USD 5.3 billion as the economy recovers. (LK/ZH)