“The difference between countries with a trade deficit and surplus is that the countries with a trade surplus are relatively more resilient; their currency may even appreciate,” Mirza said during a seminar in Yogyakarta on Monday, as reported by Antara news agency.

According to data from the Central Statistics Agency (BPS), in 2006 Indonesia recorded a current account surplus of 3 percent, but a current account deficit in 2017 of 1.7 percent.

Mirza said that neighboring countries had maintained a current account surplus over the year, such as Malaysia at 16.1 percent in 2006 to 3 percent in 2017. Meanwhile, Thailand saw an increase in surplus from 1 percent in 2006 to 11.7 percent in 2017, he said.

Mirza further said that Malaysia and Thailand not only enjoyed a trade surplus, but also saw a flourishing tourism sector. He cited data from the UN World Tourism Organization, which stated that in 2016, Thailand’s tourism sector contributed US$49.9 billion to its foreign exchange reserves, while Malaysia's tourism sector contributed $18.1 billion.

“Therefore, the [government] policy must also support exports and tourism. Our current foreign exchange reserve is more than enough, but we can’t use it all the time. Activities in the real sector must continue to increase,” he said.

Indonesia’s forex reserve stood at $126 billion in March, a slight decline from $128.06 billion recorded in the previous month as the central bank moved to stabilize rupiah. (dwa)

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