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2/19/2021 12:00 AM
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Indonesia’s Balance of Payment (BOP) in Q4/2020 Remained Solid, External Resilience Maintained

Government Press Release

No. 23/43/DKom

Indonesia 's Balance of Payment (BOP) in the Q4/2020 remained solid, thereby reinforcing external resilience. The BOP recorded a low deficit at USD0.2 billion in the Q4/2020, supported by the persistence of current account surplus amidst a low capital and financial account deficit. Therefore, the BOP performance recorded a USD2.6 billion surplus in 2020. The official reserve assets at the end of December 2020 increased to USD135.9 billion, equivalent to 9.8 months of imports and servicing government external debt, which is well above the international adequacy standard.

The current account remained surplus in Q4/2020, supported by a larger goods trade balance surplus. In Q4/2020, the current account recorded a surplus of USD0.8 billion (0.3% of GDP), continuing the surplus in the previous quarter of USD1.0 billion (0.4% of GDP). The current account surplus was bolstered by a surplus in the goods trade balance due to increased exports driven by the improvement in global demand and commodity prices, amidst limited increment of imports. Meanwhile, the services trade balance deficit widened mainly triggered by the increase in the deficit of telecommunications, computer, and information services, as well as the deficit of transportation services trade as a result of rising freight services payment as goods imports increased. In addition, the improvement in the domestic economy in Q4/2020 affected an increase of yield payments on direct investment, which drove a wider deficit of the primary income account.

Capital and financial account in Q4/2020 remained solid, primarily supported by the surplus of direct investment and portfolio investment. In Q4/2020, foreign capital inflows in direct investment and portfolio investment were stronger in line with reduced global financial market uncertainty, and positive investor perceptions towards the promising domestic economic outlook being maintained. Direct investment posted a USD4.2 billion surplus, increasing from the previous quarter, mainly in equity capital instruments. In addition, portfolio investment also recorded net inflows of USD2.2 billion, thus reversing the USD1.9 billion net outflow in the previous quarter. Such development was primarily attributable to net capital inflows of the Rupiah government debt securities (SUN). In contrast, other investments recorded a sizable deficit in response to an increase in payments on maturing loans and placement of private sector deposits and other assets abroad. Consequently, the capital and financial account in Q4/2020 recorded a low deficit of USD 0.9 billion (-0.3% of GDP).

For 2020 as a whole, the BOP performance recorded a surplus, thus maintaining external sector resilience amidst the pressure of the Covid-19 pandemic. In 2020, the BOP recorded a USD2.6 billion surplus, continuing from USD4.7 billion surplus in the previous year. Such development was supported by a decrease in the current account deficit and surplus in the capital and financial account. The current account deficit in 2020 stood at USD 4.7 billion (-0.4% of GDP), shrank from USD30.3 billion (-2.7% of GDP) in 2019. The narrower current account deficit was stemmed from limited export performance in consequence of lower demand from trading partner countries affected by the Covid-19, amidst restrained imports due to weak domestic demand. Meanwhile, the capital and financial account in 2020 still recorded a surplus of USD7.9 billion in line with the maintained optimism of investors towards the domestic economic recovery and lower uncertainty in the global financial markets, especially in the second half of 2020.

Owing to steps taken for stabilization and the strengthening of the BI policy mix, along with close coordination with the Government and Financial Services Authority (OJK), foreign capital inflows to domestic financial markets was maintained. Looking forward, Bank Indonesia will carefully observe global economic dynamics that can affect Indonesia's BOP outlook, continually strengthen the policy mix to maintain economic stability, and enhance policy coordination with the Government and relevant authorities to bolster the external sector resilience.

Further information and data are presented in the Q4/2020 Indonesia's Balance of Payments Report on the Bank Indonesia website.

Jakarta, 18th February 2021
Head of Communication Department
Erwin Haryono
Executive Director
Information about Bank Indonesia
Tel. 021-131, Email:


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

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