​Bank Indonesia will Implement the 6th Edition of Balance of Payments and International Investment Position Manual (BPM6) in Indonesia’s Balance of Payments (IBP) and Indonesia’s International Investment Position (IIIP) - Bank Sentral Republik Indonesia
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September 22, 2019
To support the implementation of tasks of Bank Indonesia and provide information on economic development, primarily in the external sector, Bank Indonesia publishes IBP quarterly and IIIP annually. Bank Indonesia currently prepares IBP and IIIP by referring to the international standard of the 5th Edition of Balance of Payments Manual (BPM5) published by the International Monetary Fund (IMF). In line with the issuance of BPM6 by IMF, Bank Indonesia will implement the latest edition standard starting from IBP publication in the second quarter of 2014 in August 2014.
 
In line with the release of IBP statistics in the second quarter of 2014 in August 2014, the data as of 2010 will be revised according to the BPM6 format to ensure time series comparability.  Meanwhile, time series based on BPM5 as of 2012 will remain available on Bank Indonesia website. Referring to this guideline, as from September 2014 Bank Indonesia will publish IIIP statistics following BPM6 format. In addition, the IIIP data presentation period will change from annually to quarterly to meet the needs of users for the latest data. 
 
What is BPM6?
Similar to the previous edition, the 6th edition of Balance of Payments and International Investment Position Manual (BPM6) is the standard framework for compilation of transaction statistics (Balance of Payments) and position (International Investment Position) between the population of one country and the rest of the world. This guideline provides explanation of the concept, definition, classification, and convention used in the statistics of balance of payments and international investment position.
 
BPM6 is the latest edition of a series of BPM editions, which have been published since 1948, to replace the previous edition (BPM5) published in 1993. BPM6 is issued in consideration of the world’s economic development related to globalization, financial and technological innovation, and the increasing demand for balance sheet utilization in vulnerability assessment. BPM6 application by a country will improve data comparability internationally. The position of Indonesia as a member of G-20 and ASEAN also gives a significant encouragement to immediately apply BPM6 in preparation of IBP and IIIP. In national scope, BPM6 application will improve the consistency of IBP and IIIP with other macroeconomic statistics. Change of statistical account structure of Balance of Payments between BPM6 and BPM5 may be seen in Table 1.
 
Gradual BPM6 Implementation
Bank Indonesia will apply BPM6 gradually. At the initial phase, the statistics of BPI and IIIP mostly change in terms of reclassification of components of available data and methodology improvement by using the presently available data sources. 
 
The presentation format of current account transactions is relatively same as BPM5 because the primary change thereto is reclassification and change of names of several component standards of goods and services. In financial transactions, the primary change occurs in the presentation format of direct investment from directional basis (Indonesia’s direct investment to foreign countries and foreign direct investment in Indonesia) to asset-liability investment principle (direct investment-asset and direct investment-liability). Meanwhile, the convention to use +/- applied to IBP publications based on BPM5 will be maintained. It is applied by considering easy understanding for users and best practices of several countries adopting BPM6.
 
In the future, Bank Indonesia will consistently improve the methodology and data source to comply with BPM6 as a sustainable process and a part of quality improvement of external sector statistics.
 
More detailed explanation on BPM6 implementation may be seen in the Frequently Asked Questions (FAQs). Further questions may be submitted by email to bnp@bi.go.id or by phone to Ms. Pujiastuti (+6221 2981 8328), Mr. Bayu D. Atmanto (+6221 29816688), or Mr. Andy J. Prasetyo (+6221 29814182).
 
Table 1
BMP6.png

 
 
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