The Balance of Payments amassed a USD2.4 billion surplus in the second quarter of 2022 after recording a USD1.8 billion deficit in the previous period.
Improvement in overall balance was supported by a significantly larger current account surplus coupled with a narrower capital and financial account deficit.
"Consequently, the position of reserve assets at the end of June 2022 stood at USD136.4 billion, equivalent to 6.4 months of imports and servicing government external debt, which is well above the international adequacy standard," BI Communication Department Head Erwin Haryono said in a media release on Friday.
Current Account
The current account surplus increased significantly in the second quarter of 2022, primarily boosted by stronger non-oil and gas export performance.The current account recorded a USD3.9 billion surplus (1.1% of GDP) in the reporting period, up significantly from USD0.4 billion (0.1% of GDP) in the first quarter of 2022.
Current account performance was primarily supported by a larger non-oil and gas trade surplus given remained high international commodity prices during reporting period.
On the other hand, the oil and gas trade deficit increased on the back of higher imports in response to growing demand in line with greater public mobility and the soaring global oil price.
Furthermore, the primary income account deficit and services trade deficit also increased as domestic economic activity accelerated, coupled with return-on-investment payments in the reporting period.
Capital and Financial Account
Despite elevated global financial market uncertainty, capital and financial account performance in the second quarter of 2022 remained sound.The capital and financial account recorded a USD1.1 billion deficit (0.3% of GDP) in the second quarter of 2022, improving from a USD2.1 billion deficit (0.7% of GDP) in the first quarter of 2022.
Capital and financial account performance in the reporting period was influenced by a net inflow (surplus) of direct investment totalling USD3.1 billion, thus maintaining performance from the previous period and reflecting investor optimism in the promising domestic economic outlook and a conducive domestic investment climate.
In addition, portfolio investment also recorded limited improvements in the form of a narrower USD0.4 billion deficit amidst persistently high global financial market uncertainty.
In contrast, other investment transactions posted a wider deficit mainly due to increasing payments on maturing liabilities in line with quarterly trends.
"Moving forward, Bank Indonesia will carefully monitor 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," he concluded.
Cek Berita dan Artikel yang lain di Google News
