TEMPO.CO, Jakarta - Despite a US$0.29 billion deficit in the first quarter of 2016, Bank Indonesia (BI) governor Agus Martowardojo predicted that Indonesia’s overall balance of payments would experience a surplus.
Agus explained that the condition was not surprising since capital and financial transaction surpluses in the first quarter were not enough to cover the current account deficit (CAD).
“However, the balance of payments would be positive within a year,” Agus told Tempo at the Finance Ministry Office on Friday May 13, 2016.
Indonesia’s current account deficit in the first quarter of this year decreased to US$4.7 billion from US$5.1 billion in the fourth quarter of 2015. However, the CAD increased from US$4.1 billion in the same period of last year.
Meanwhile, the financial and capital transactions experienced a US$4.2 billion surplus. The figure decreased compared to the previous quarter and the first quarter of last year that stood at US$9.8 billion and US$5.0 billion, respectively.
BI executive director of economic and monetary policies Juda Agung revealed that there were several indications in relation to the current foreign debt repayment.
“Debt repayment is bigger than withdrawal, so that the net pay is quit big. It means that the foreign debt exposure is decreasing. Perhaps the private sector doesn’t want to be burdened with the current condition,” Juda explained.
Juda added that the overall balance of payments was still dynamic and hard to predict, since it depended on inflows. Based on data released by BI, there was a surge of liabilities in other investment posts in financial transactions, whereas the previous quarter and the first quarter of 2015 recorded surpluses of US$1.5 billion and US$7.7 billion, respectively.
Finance Minister Bambang Brodjonegoro said that Indonesia needs inflows during such a situation. Therefore, Bambang suggested that the tax amnesty bill would be helpful.
BISNIS.COM
