TEMPO.CO, Jakarta - Bank Indonesia (BI) Senior Deputy Governor Mirza Adityaswara predicted that Indonesia would record a surplus in its trade balance as a result of improving exports.
Mirza explained that 70 percent of Indonesia’s exports were commodities consisting of non-oil and gas that accounted for 50 percent and oil and gas that accounted for 20 percent.
“With a recovery in prices in mining, plantation, and gas sectors, exports will increase,” Mirza said in Jakarta onMonday, September 12, 2016.
However, Mirza viewed that the increase in exports was not significant enough. Meanwhile, imports could be reduced due to significant domestic demands.
“Therefore, the trade balance surplus will continue,” Mirza added.
Mirza revealed that BI was more focused on the current account deficit. BI had expressed its commitment to maintain the current account deficit to be under 3 percent of the gross domestic product (GDP).
“In the first and second quarter, the figure was about 2 percent of the GDP. So, there’s nothing to worry about. It’s a healthy figure, and we’re maintaining a good inflation rate,” Mirza said.
Such a condition, Mirza explained, would allow BI to relax its monetary policies, and macroeconomic indicators were favorable. Moreover, the government had initiated efforts to prevent budget deficits.
Earlier, Indonesia recorded a surplus of US$598.3 million in its trade balance in July, which was lower than that in June at US$900.2 million. Cumulatively, Indonesia had recorded a total surplus of US$4.17 billion over the last seven month.
GHOIDA RAHMAH
