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Indonesia’s Current Account Surplus Shrinks in Q1

Indonesia’s current account surplus shrank in the first quarter of this year, posting a figure of 3 billion U.S. dollars, down from 4.2 billion dollars in the fourth quarter of last year, the country’s central bank, Bank Indonesia, said on Tuesday.

“A high goods trade balance surplus was maintained on the back of solid demand from Indonesia’s major trading partners for non-oil and gas export commodities, coupled with a narrower oil and gas trade deficit as global oil prices retreat,” said Executive Director of the Communication Department Erwin Haryono.

The capital and financial account recorded a surplus of 3.4 billion dollars, a significant increase over 0.3 billion dollars in the previous quarter, supported by increased investment in domestic government securities, as global financial market uncertainties eased.

Meanwhile, Indonesia noted a balance of payments surplus of 6.5 billion dollars in the January to March period, up from 4.7 billion dollars in the previous quarter.

Bank Indonesia estimated that the current account balance will be in the range of a surplus of 0.4 percent to a deficit of 0.4 percent of gross domestic product in 2023.