Jakarta: Bank Indonesia has predicted that Indonesia's balance of payments will record a surplus of USD3 billion in the second quarter of 2019.
"Our foreign exchange reserves increased in March-June 2019. It indicated the increase of balance of payments surplus," BI Governor Perry Warjiyo said here on Friday.
"Current account deficit usually increases in the second quarter. But it is expected to stay below three percent in this year's second quarter," the BI governor added.
Indonesia’s official reserve assets stood at USD123.8 billion at the end of June 2019, increasing from USD120.3 billion at the end of May 2019.
The official reserve assets position was equivalent to finance 7.1 months of imports or 6.8 months of imports and servicing government’s external debt, and well above the international standard of reserve adequacy of 3 months of imports.
The improvement in official reserve assets in June 2019 was primarily influenced by oil & gas and other foreign exchange receipts, as well as the government’s external debt withdrawal.
"Bank Indonesia considers that the official reserve assets position was able to support the external sector resilience and maintain macroeconomic and financial system stability," the central bank said in a press statement released earlier today.
"Going forward, Bank Indonesia views that the official reserve assets remain adequate, supported by the stability and upbeat outlook of the domestic economy," the central bank noted.