Current Account Performance Improved Further in Q1/2014 - Bank Sentral Republik Indonesia
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September 22, 2019
No. 16/31/DKom


Trend of improvement in the current account to a more healthy level continued in Q1/2014. The current account deficit fell from U.S.$4.3 billion (2.12% of GDP) in the Q4/2013 to U.S.$4.2 billion (2.06% of GDP) in Q1/ 2014. This improvement came from decrease in imports of goods and narrowing deficits in services and income accounts. Non-oil & gas imports still contracted following the moderation in domestic demand, as reflected in the decrease in imports of raw materials and capital goods. Although non-oil & gas imports has decreased, the non-oil & gas trade surplus in Q1/ 2014 was lower than Q4/ 2013 as non-oil & gas export growth in nominal term slipped back into negative territory due to weakening global demand, especially China, decline in global commodity prices, and temporary impact of ban on the exports of raw mineral. In addition, oil imports also contracted further following the pattern of lower fuel consumption at the beginning of the year. However, oil and gas exports that also charted negative growth in line with decline in oil production led to increased oil and gas trade deficit. Meanwhile, the more modest deficit in services account was explained by reduced payments on transportation services, in keeping with the drop in imports of goods, and reduced payments on travel services, along with the lower number of the Indonesian traveling abroad in the aftermath of the hajj season and year-end holiday period. In the same period, the income account deficit also narrowed, mainly due to reduced foreign debt interest payments as scheduled.

On the other hand, the improvement in Indonesia’s economic fundamentals bolstered foreign investors’ interest to invest in Indonesia so that the capital and financial account charted U.S.$7.8 billion surplus. Total foreign inflows increased from U.S.$10.5 billion in Q4/2013 to U.S.$12.3 billion in Q1/2014, primarily in portfolio instruments. The increased inflows of foreign portfolio investments, in addition to the impact of increase in net foreign buying in rupiah denominated portfolio instruments, was also supported by the Government step in issuing foreign currency bonds as a source of fiscal financing. The capital and financial account surplus also sourced from foreign direct investment inflows that were still robust and recorded at the same level relative to the previous quarter. However, the capital and financial account surplus in Q1/2014 was lower than the surplus in Q4/2013 amounted to U.S.$8.8 billion mainly due to placements of private savings abroad in keeping with strong inflows in portfolio investment.

Improvement in the current account and the capital and financial account surplus led the Indonesia’s overall balance of payments (BOP) in Q1/2014 recorded a surplus of U.S.$2.1 billion. Surplus in Q1/2014 BOP, in turn pushing up international reserves from U.S.$99.4 billion in Q4/2013 to U.S.$102.6 billion in Q1/2014, or equivalent to 5.7 months of imports and government foreign debt payments. In April 2014, international reserves continued to increase to U.S.$105.6 billion. Bank Indonesia views the BOP performance in Q1/2014 positively contributes in supporting a more balanced economic growth.

Further information and data is presented in the Q1/2014 Indonesia Balance of Payments Report on the Bank Indonesia website.

Jakarta, 9 May 2014
Communication Department

Peter Jacobs



  • Bank Indonesia will implement the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) issued by the International Monetary Fund (IMF) in Indonesia’s balance of payments statistics starting from Q2/2014 data published in August 2014. Explanation of the impact of the application of the BPM6 the balance of payments statistics can be seen in the material "BPM6 Implementation: What Changed in Indonesia's balance of payments (BOP)" as attached.
  • The next publication of Indonesia Balance of Payments statistics is scheduled for August 15, 2014 (tentatively one day after the August 2014 Board of Governors' Meeting).


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