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2/22/2024 12:00 AM
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Indonesia’s Balance of Payments Records Surplus in Q4-2023, External Sector Resilience Maintained

Government Press Release

No. 26/34/DKom 

Indonesia's Balance of Payments (BOP) performance improved in the fourth quarter of 2023, thus bolstering external sector resilience.  Indonesia's BOP in the fourth quarter of 2023 recorded an USD8.6 billion surplus, improving significantly from a USD1.5 billion deficit in the previous period.  The surplus in the BOP was supported by an expanded capital and financial account surplus, coupled with a consistently low current account deficit.

The current account registered a low deficit in the reporting period, underpinned by improved demand and international commodity prices amid increasing domestic economic growth.  The current account recorded a USD1.3 billion deficit (0.4% of GDP) in the fourth quarter of 2023, slightly higher from a USD1.0 billion deficit (0.3% of GDP) in the previous period.  The manageable current account deficit primarily stemmed from an increased trade surplus driven by higher exports of goods, fueled by elevated global demand and commodity prices.  On the other hand, goods imports also rose in response to a seasonal spike in demand during the Christmas and New Year festive period.  Additionally, the services trade deficit and primary income account deficit widened in line with elevated domestic activity and interest payments in the reporting period.

Capital and financial account performance also improved as global financial market uncertainty eased. The capital and financial account recorded a significant improvement in the reporting period, from a USD0.1 billion deficit in the third quarter of 2023 to a USD9.8 billion surplus in the fourth quarter of 2023.  This improvement was primarily supported by portfolio investment inflows, which returned to the domestic financial markets in line with early signs of less global financial market uncertainty.  Direct investment remained solid, maintaining a relatively stable surplus due to investor optimism about the promising economic outlook and conducive domestic investment climate.  Other investment transactions also recorded a surplus driven by the government and private sector foreign loan withdrawals.

Overall, BOP performance in 2023 demonstrated solid external sector resilience despite elevated global economic uncertainty. In 2023, the BOP booked a USD6.3 billion surplus, up from USD4.0 billion surplus in 2022, primarily supported by a strong capital and financial account performance.  Meanwhile, the current account in 2023 recorded a manageable deficit of USD1.6 billion (0.1% of GDP), after registering a USD13.2 billion surplus (1.0% of GDP) in 2022.  These developments were mainly influenced by a lower goods trade surplus in line with global economic moderation and lower commodity prices, coupled with solid domestic demand.  On the other hand, the services trade deficit narrowed in line with a surge of inbound international travellers as the tourism sector continued to recover.  The capital and financial account in 2023 recorded significant improvements, registering an USD8.7 billion surplus to reverse the USD8.7 billion deficit recorded in 2022, supported by surpluses in both direct investment and portfolio investment despite persistent global financial market uncertainty.  The position of reserve assets at the end of December 2023 increased to USD146.4 billion from USD137.2 billion at the end of December 2022, equivalent to 6.5 months of imports and servicing government external debt, well above the international adequacy standard of around three months of imports.

Moving forward, Bank Indonesia will remain vigilant regarding global economic dynamics that could influence the BOP outlook and will continue strengthening the policy mix response, supported by close policy synergy with the Government and other relevant authorities to reinforce external sector resilience.

Further information and data are presented in the Fourth Quarter of 2023 Indonesia Balance of Payments Report​ accessible via the official Bank Indonesia website.

Jakarta 22nd February 2024

Communication Department

Erwin Haryono

Governor Assistant​​

​Contact Center BICARA : (62 21) 131
E-mail :
​​​​Working hours: Monday to Friday, 08.00-16.00 West Indonesia Time
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