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RI financial transactions run well, says BI
Bank Indonesia (BI) senior deputy governor Mirza Adityaswara said until the third quarter of 2014, Indonesiaâs financial-transaction work performance ran well as the countryâs current account deficit declined, supported by stabilization policies that both the central bank and the government had taken
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B
ank Indonesia (BI) senior deputy governor Mirza Adityaswara said until the third quarter of 2014, Indonesia's financial-transaction work performance ran well as the country's current account deficit declined, supported by stabilization policies that both the central bank and the government had taken.
'The amount of current deficit transactions in the third quarter of 2014 reached US$6.8 billion [3.07 percent of gross domestic product] or lower than a deficit of $8.7 billion [4.06 percent of GDP] in the second quarter of this year and the deficit in the same period of 2013, which reached $8.6 billion [3.89 percent of GDP],' he said Sunday.
Mirza said the improved current-account work performance was primarily supported by the goods trade balance that had gained a surplus again along with an increased surplus of non-oil and gas trade balance in the midst of oil and gas trade-balance deficit that remained high.
In the third quarter of 2014, he said non-oil and gas imports were still contracted within the range of 2.7 percent while prime-product exports also increased along with improved-mineral exports following the government's policy to issue a permit on raw-mineral exports.
'The non-oil and gas export growth was supported by increases in export prices and export demand improvements, especially vegetable oil and manufacturing products.'
On oil and gas, such a high oil and gas trade-balance deficit in the third quarter of 2014 was influenced by oil and gas imports that remained high amid the decline of oil exports following decreases in global oil prices.
Mirza said the decreased current-account deficit pressures were influenced by seasonal patterns of services-balance deficit and prime revenues that were lower.
He said foreign investors' trust toward prospects regarding the Indonesian economy had remained positive, which could be seen from foreign capital inflows for investments in Indonesia.
In the third quarter of 2014, capital and financial transaction surplus amounted to $13.7 billion.
Overall, Indonesia's balance of payment in the third quarter of 2014 reached a surplus of $6.5 billion, up from $4.3 billion in the previous quarter.
'The increase in the balance of payment surplus has pushed increases in foreign exchange reserves to $111.2 billion at the end of the third quarter of 2014 from $107.7 billion at the end of the second quarter of this year,' said Mirza. (ebf)(+++)
