No. 24/134/DKom
Indonesia’s
Balance of Payments (BOP) in the first quarter of 2022 remained sound, thereby
bolstering external resilience. The current account
surplus persisted despite capital and financial account deficit, leading to a
BOP deficit of USD1.8 billion in the first quarter of 2022. Consequently, the
position of reserve assets at the end of March 2022 stood at USD139.1 billion,
equivalent to 7.0 months of imports and servicing government external debt,
which is well above the international adequacy standard.
A current account surplus was maintained in the first quarter of 2022,
primarily supported by a large goods trade surplus. The current account recorded a USD0.2 billion surplus (0.1% of GDP) in the
first quarter of 2022, thereby maintaining the positive balance recorded in the
previous period at USD1.5 billion (0.5% of GDP). Current account performance was underpinned
by a solid non-oil and gas trade surplus given soaring international commodity
prices, including coal and crude palm oil (CPO), despite a higher oil and gas
trade deficit in line with the rising global oil price. Meanwhile, the services trade deficit increased
as economic activity continued to improve and the number of outbound Indonesian
travellers picked up in response to looser international travel restrictions
and reopening of the umrah pilgrimage.
On the other hand, a narrower primary income account deficit also shored
up the current account surplus.
Despite persistently elevated global financial market uncertainty, capital
and financial account performance in the first quarter of 2022 remained sound,
supported by a direct investment surplus.
The capital and financial account in the first quarter
of 2022 recorded a USD1.7 billion deficit (0.5% of GDP), reducing from USD2.2
billion (0.7% of GDP) in the fourth quarter of 2021. Investor optimism
concerning the promising domestic economic outlook and a conducive investment
climate attracted a net inflow of direct investment in the first quarter of
2022 totalling USD4.5 billion, up from USD3.8 billion in the previous period.
Meanwhile, global financial market uncertainty persistently elevated in line
with escalating geopolitical tensions between Russia and Ukraine and faster
policy normalisation in advanced economies triggered foreign capital outflows
of portfolio investment, though lower than recorded in the fourth quarter of
2021. In addition, other investment transactions experienced a larger deficit
in the reporting period, among others, due to increases of trade credit and
placements in foreign currency assets given persistently strong export
activity.
Moving forward, Bank Indonesia will carefully
observe global economic dynamics that could impact Indonesia’s BOP outlook and
strengthen the policy mix to maintain economic stability, while bolstering
policy coordination with the Government and other relevant authorities to
reinforce external sector resilience.
Further
information and data are presented in the Q1/2022 Indonesia Balance of Payments
Report available on the official Bank Indonesia website.
Jakarta, 20th May 2022
Head of Communication Department
Erwin Haryono
Executive Director
Information on Bank Indonesia
Tel. 021-131, email: bicara@bi.go.id
