RI’s balance of payment books US$4b deficit in Q3 on heavy outflows

The nation’s balance of payments booked a US$4 billion deficit in the third quarter this year on the large amount of capital outflows in the financial market, Bank Indonesia (BI) says.

The deficit was mainly due to a $3.4 billion negative transaction in the capital and financial balance, while the current account surplus was low at $200 million during the July-September period, the central bank said in a statement released on Tuesday.

“The outflow in portfolio investment was triggered by global financial turmoil amid the lengthy process to resolve the European debt crisis,” the press statement read.

The current account surplus was supported by a “better oil and gas trade balance after booking a deficit in the previous quarter” as the volume of oil production and gas exports rose while oil import volume declined, BI said.

The balance of payments deficit was pressured by foreign exchange reserve concerns, which were down by more than $10 billion from the August high of $114.5 billion. The figure, nevertheless, could still afford 6.6 months of the nation’s imports and government foreign debt bills, the central bank said.