Indonesia records BoP surplus of 9.2 billion USD in Q2 (Photo: https://theinsiderstories.com/) Jakarta (VNA) – Bank Indonesia (BI) reported on August 18 that the balance of payments (BoP) of thecountry had a surplus of 9.2 billion USD in the second quarter of 2020.
According to a report from the bank, the BoP experienced a deficit of 8.5billion in the first quarter.
BI said the improvement in the BoP was supported by adecrease in the current account deficit (CAD) and a large surplus in thecapital and financial account.
Inline with thedevelopment of the BoP surplus, the position of foreign exchange reserves atthe end of June stood at 131.7 billion USD, it added.
The current account deficit of Indonesia was recorded at 2.9 billion USD or 1.2percent of gross domestic products (GDP), lower than the deficit in theprevious quarter of 3.7 billion USD or 1.4 percent of GDP. The decline inthe CAD stemmed from a surplus in the goods trade balance due to lower importsdue to weakening domestic demand.
Meanwhile, thecapital and financial account surplus was recorded at 10.5 billion USD mainlyfrom net inflows of portfolio investment and direct investment, afterrecording a deficit of 3.0 billion USD in the first quarter of 2020.
Direct investment also contributed to the surplus on the capital andfinancial account, in line with the domestic economic contraction of theSoutheast Asian nation, the bank said./.
VNA
