Jakarta: Bank Indonesia (BI) is committed to carefully observing global economic dynamics that can affect Indonesia's balance of payments (BoP) outlook.
In addition to that, the central bank will continually strengthen the policy mix to maintain economic stability and enhance policy coordination with the Indonesian Government and relevant authorities to bolster the external sector resilience.
"For 2020 as a whole, the BOP performance recorded a surplus, thus maintaining external sector resilience amidst the pressure of the Covid-19 pandemic," said BI Communication Department Head Erwin Haryono in a press release on Friday.
In 2020, the BOP recorded a USD2.6 billion surplus, continuing from USD4.7 billion surplus in the previous year.
Such development was supported by a decrease in the current account deficit and surplus in the capital and financial account.
The current account deficit in 2020 stood at USD 4.7 billion (-0.4% of GDP), shrank from USD30.3 billion (-2.7% of GDP) in 2019.
The narrower current account deficit was stemmed from limited export performance in consequence of lower demand from trading partner countries affected by the Covid-19, amidst restrained imports due to weak domestic demand.
Meanwhile, the capital and financial account in 2020 still recorded a surplus of USD7.9 billion in line with the maintained optimism of investors towards the domestic economic recovery and lower uncertainty in the global financial markets, especially in the second half of 2020.
Owing to steps taken for stabilization and the strengthening of the BI policy mix, along with close coordination with the Government and Financial Services Authority (OJK), foreign capital inflows to domestic financial markets was maintained.
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