Export slowdown caused current account deficit: minister

Export slowdown caused current account deficit: minister

Coordinating Minister for Economic Affairs Darmin Nasution (ANTARA FOTO/Sigid Kurniawan)

Jakarta (ANTARA News) - Coordinating Minister for Economic Affairs, Darmin Nasution, believed that the slowdown of export has caused the current account deficit.

"Investment is good enough, but our export growth is still slow. So the pressure on us is relatively high," Nasution said in Jakarta on Wednesday.

He further noted that the current account deficit affected the strengthening of the US dollar to Indonesia`s currency higher than other countries` currencies.

"If we are not that bad, the pressure is the same as the impact on the countries around us. But the pressure on us is more severe than to Thailand and Malaysia," he explained.

In addition, Indonesian imports also recorded an increase in line with the high imports of raw materials needed for oil and gas investment and the import of oil and gas.

This condition is exacerbated by export earnings, which are still a lot parked abroad, thus contributing to the supply of US dollars domestically.

Thus, the government is trying to reduce the current account deficit by improving business permits through an integrated service system (OSS) to encourage investment and import-based substitution investment.

The government has also encouraged the use of biodiesel fuel (B20) to reduce oil and gas imports, which has been the main contributor to the trade balance deficit.

Apart from that, in a bid to strengthen foreign exchange, the government boosts the tourism sector to attract a large number of foreign tourists.

Reporting by Satyagraha
Editing by Bustanuddin