"The surplus in the second quarter of this year was mainly as a result of capital and financial account. We see that it would continue for the rest of this year," Agus said.Batam, Riau Islands (ANTARA News) - Bank Indonesia Governor Agus Martowardojo predicted the country would continue to chalk up surplus in its balance of payments for the rest of the year sustained by strong inflows in capital and financial account.
The countrys balance of payments left a surplus of US$2.2 billion in the second quarter of this year as against a deficit of US$300 million in the previous quarter.
"The surplus in the second quarter of this year was mainly as a result of capital and financial account. We see that it would continue for the rest of this year," Agus said here on Friday.
Agus, however, gave no figure in his prediction for the balance of payment surplus in the remaining two quarters of this year.
Bank Indonesia described the surplus in the second quarter of this year as encouraging after a deficit in the previous three month period.
The balance of payment is an indicator gauging economic transactions between a country and other countries including in current account, capital account and financial account.
According to Communication Executive Director of the Central Bank Tirta Segara, the surplus in the country balance of payments in the second quarter showed improvement in the countrys economic external balance , and helps sustain macro economic stability.
Tirta said the surplus was party attributable to a decline in the countrys current account deficit to US$4.7 billion (2 percent of the GDP) from US$4.8 billion in the first quarter of this year.
The current account deficit declined as a result of an increase in the trade surplus for commodities outside oil and gas.
Meanwhile deficit was still recorded in the oil and gas trade on shrinking oil production.
"Deficit in service account rose to follow the low seasonal pattern of service account," Tirta said.
The surplus in the capital and financial account in the second quarter of 2016 reached US$7.4 billion , up from US$4.6 billion in the previous quarter.
"This was sustained by inflows of portfolio investment capital. Net portfolio investment capital grew significantly to US$8.4 billion in the second quarter of 2016," he said.
The increase in the portfolio investment was attributable largely to the sales of global bond by the government and foreign net buy at stock market and rupiah state securities market. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
