ASIATODAY.ID, JAKARTA – Indonesia’s Trade Balance (NPI) will experience a surplus of $6.3 billion throughout 2023. This surplus is higher than the surplus in 2022 which was $4.0 billion. This development is supported by the strong performance of capital and financial transactions.
“The overall development of NPI in 2023 shows the resilience of the external sector which remains strong amidst still high global economic uncertainty,” said Head of the Communications Department of Bank Indonesia (BI) Erwin Haryono, in an official statement, Thursday, February 22 2024.
Erwin explained that the current account in 2023 recorded a controlled deficit of $1.6 billion or the equivalent of 0.1% of gross domestic product. In the previous year’s period, the current account still posted a surplus of $13.2 billion or 1.0% of gross domestic product.
According to Erwin, this development was influenced by the decline in the goods trade balance surplus, in line with the global economic slowdown and falling commodity prices, as well as strong domestic demand.
On the other hand, the services balance deficit reduced in line with the increase in the number of foreign tourists as the tourism sector continued to recover.
Furthermore, Erwin said, capital and financial transactions in 2023 recorded significant improvements by posting a surplus of $8.7 billion, compared to a deficit of $8.7 billion in 2022. This improvement was supported by a surplus of direct investment and portfolio investment amidst still high market uncertainty. global finance.
It was recorded that the position of foreign exchange reserves at the end of December 2023 increased to $146.4 billion from $137.2 billion at the end of December 2022.
“The position of foreign exchange reserves is equivalent to financing 6.5 months of imports and government foreign debt, and is above the international adequacy standard of around 3 months of imports,” explained Erwin.
He added that in the future, BI will continue to pay close attention to the dynamics of the global economy which can affect the prospects for Indonesia’s trade balance and continue to strengthen the policy mix response supported by close policy synergy with the government and related authorities to strengthen the resilience of the external sector. (AT Network)
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