TEMPO.CO, Jakarta - Bank Indonesia (BI) noted a substantial amount of foreign capital inflows at the beginning of this year. As of January 18, net inflows to the domestic market reached US$200 million.
"This is reflected in the investment portfolios which recorded the limited net inflows of 0.2 billion US dollars as of January 18, 2022," the central bank's governor, Perry Warjiyo, said in a press conference on Thursday, January 20.
Perry said that the Indonesian Balance of Payments' (NPI) surplus is expected to have increased in 2021, supported by the current accounts surplus or around 0.2 percent of the GDP, as well as higher surpluses in capital and financial transactions.
At the end of last year, Indonesia's foreign exchange reserves stood at US$144.9 billion or equivalent to financing 8.0 months of imports or 7.8 months of imports plus government foreign debt payments. It is above the international adequacy standard of 3 months of imports.
Looking ahead, the balance of payments for 2022 is expected to sustain with a low current accounts deficit of around 1.1 percent to 1.9 percent of GDP.