JAKARTA, Aug. 20 (Xinhua) -- Indonesia's Balance of Payment (BOP) in the second quarter of 2021 remained good, thereby reinforcing external resilience, according to central bank Bank Indonesia (BI).
The BOP recorded a low deficit at 0.4 billion U.S. dollars in the second quarter of 2021, driven by a remained low current account deficit and the continued capital and financial account surplus, BI's Head of Communication Department Erwin Haryono said in a statement here Friday.
Consequently, the position of foreign exchange reserves at the end of June 2021 stood at 137.1 billion dollars, relatively stable from the position at the end of March 2021, Haryono noted.
The position of foreign exchange reserves was equivalent to finance 8.8 months of imports and the government's servicing external debt, which is above the international adequacy standard, he added.
According to him, the current account deficit in the second quarter of 2021 remained low despite increasing in line with the improvement of domestic economy.
He further said the current account recorded a deficit of 2.2 billion dollars (0.8 percent of GDP) In the reporting period, higher than the previous quarter deficit of 1.1 billion dollars (0.4 percent of GDP).
Such development was influenced by a larger goods trade surplus as stronger demands from main trading partner countries as well as rising international commodity prices have edged up exports, amidst increment of imports as the domestic economy continues to recover, he said.
Meanwhile, the primary income deficit rose in line with an increase of yield payments in the form of dividends, which was influenced by improvement in corporate performance during the reporting period. Enditem
