Bank Indonesia announces a return of positive portfolio investment inflows in the second quarter of 2024, supporting Indonesia’s balance of payments performance.
Bank Indonesia (BI) announced that portfolio investment inflows returned to positive in the second quarter of 2024, up to 20th May, 2024. Net inflows amounted to $1.8 billion, strengthening Indonesia’s Balance of Payments (BOP) performance. These portfolio investment inflows were driven by the positive impact of Bank Indonesia’s monetary policy mix response.
“Indonesia’s balance of payments remains strong, supporting external resilience,” stated Mr Perry during the press conference following the BI Board of Governors Meeting on Wednesday, 22nd May 2024.
The current account deficit for the first quarter of 2024 remained low, supported by continued trade surplus. However, the capital and financial account recorded a deficit in the first quarter of 2024, in line with global financial market uncertainty.
Recent developments in the second quarter of 2024 show an improvement in Indonesia’s BOP, supported by a continued trade surplus in April 2024 amounting to $3.6 billion, that was mostly driven by non-oil and gas exports..
Indonesia’s foreign exchange reserves position remained high at the end of April 2024, amounting to $136.2 billion, equivalent to financing 6.1 months of imports or six months of imports and government foreign debt payments, and is above the international adequacy standard of around three months of imports.
Overall, Indonesia’s BOP in 2024 is forecasted to remain stable, with the current account expected to stay within a low deficit range of 0.1 percent to 0.9 percent of Gross Domestic Product (GDP). Capital and financial accounts are anticipated to continue recording a surplus, supported by increased foreign capital inflows amid easing global financial market uncertainty and investor’s perceptions of the national economic prospects and attractive investment returns.
Source: Antara News
