Indonesia's balance of payment posts 2.1 bln USD surplus in Q3

Source: Xinhua| 2020-11-20 19:02:55|Editor: huaxia

JAKARTA, Nov. 20 (Xinhua) -- Indonesia's Balance of Payment (BOP) in the third quarter 2020 posted a surplus of 2.1 billion U.S. dollars, following a surplus of 9.2 billion dollars in the previous quarter, the central bank, Bank Indonesia, announced on Friday.

"The continuing balance of payment surplus is supported by the current account surplus as well as the capital and financial account surplus. The surplus supports Indonesia's external resilience," Bank Indonesia's spokesman Onny Widjanarko said on Friday.

Accordingly, the position of Indonesia's foreign exchange reserves at the end of September 2020 increased to 135.2 billion dollars, or equivalent to financing 9.1 months of imports and government foreign debt. The position is above the international adequacy standard.

Widjanarko said the current account surplus in the third quarter of 2020 recorded a surplus of 1.0 billion dollars or 0.4 percent of the gross domestic product (GDP), while in the previous quarter the current account registered a deficit of 2.9 billion dollars or 1.2 percent of the GDP.

The current account surplus is supported by a surplus in the balance of goods, in line with the improving export performance, while import activities are restrained by the weak domestic demand, he said.

Meanwhile, capital and financial transactions in the third quarter of 2020 also recorded a surplus of 1.0 billion U.S. dollars or 0.4 percent of the GDP, after a surplus of 10.6 billion U.S. dollars or 4.3 percent of the GDP in the previous quarter.

The capital and financial account surplus occurred due to direct investment inflows amid the increasing uncertainty on the global financial market. The direct investment inflows are maintained in line with the improving domestic economy. Enditem