Indonesia’s balance of payments surplus rises to 6.5 billion US dollars

Armfalcon.com, JAKARTA — Bank Indonesia (BI) reports that Indonesia’s balance of payments (BOP) performance in the first quarter of 2023 has increased. Executive Director of the BI Communication Department Erwin Haryono said that the BOP in the first quarter of 2023 had a surplus of US$6.5 billion.

“That figure has increased from US$4.7 billion in the fourth quarter of 2022,” Erwin said in a written statement, Tuesday (23/5/2023).

He explained that the BOP performance was supported by the continuing current account surplus. In addition, it was also accompanied by a surplus of capital and financial transactions.

BI noted that in the first quarter of 2023, the current account posted a surplus of US$3.0 billion or 0.9 percent of GDP. This figure continues the achievement of a surplus in the fourth quarter of 2022 of USD 4.2 billion or 1.3 percent of GDP.

Meanwhile, the capital and financial account in the first quarter of 2023 was a surplus of US$3.4 billion (1.0 percent of GDP). This figure is significant compared to a surplus of US$0.3 billion (0.1 percent of GDP) in the fourth quarter of 2022.

With these developments, Erwin ensured, the position of foreign exchange reserves at the end of March 2023 had increased from US$137.2 billion at the end of December 2022 to US$145.2 billion. “This is equivalent to financing 6.2 months of imports and servicing the government’s foreign debt, and is above the international adequacy standard of around three months of imports,” said Erwin.

Bank Indonesia assesses that the improving performance of the first quarter of 2023 balance of payments will continue to support Indonesia’s external resilience. Going forward, continued Erwin, Bank Indonesia will always pay close attention to the dynamics of the global economy that could affect the prospects for the balance of payments.

“BI continues to strengthen its policy mix response supported by close policy synergy with the government and relevant authorities to strengthen external sector resilience,” said Erwin.