"The declining current account deficit was chiefly fueled by the improving balance of trade in the non-oil/non-gas sector due to a sharp decline in imports (18.2 percent year-on-year) amidst limited domestic demand," Deputy Director of Communication Department at Bank Indonesia Junanto Herdiwan said here on Thursday.
The current account deficit in the July-September 2015 period accounted for 1.86 percent of the gross domestic product (GDP), while the current account deficit in the corresponding period last year represented 3.02 percent of the GDP.
The current account deficit in the third quarter of 2015 also declined US$0.2 billion, compared to US$4.2 billion, or 1.95 percent of the GDP, in the previous quarter.
Non-oil/non-gas exports in the third quarter of 2015 plummeted 11 percent year-on-year due in part to low global commodity prices.
In the meantime, the balance of trade in the oil and gas sector during the third quarter of 2015 recorded almost the same deficit as the previous quarter, as a decline in the surplus of the balance of trade in the gas sector was offset by a decline in the deficit from the balance of trade in the oil sector.
"The improving performance of the current account was also caused by a declining deficit in the balance of services due to a decline in the import of freight services and an increase in surplus of travel services," he said.(*)
Editor: Heru Purwanto
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