"It will need years to improve. There is now a way that it will improve in one month after a policy is issued," Nasution said.
Nasution said that the government is gradually striving to reduce the current account deficit through a number of policies to improve the trade balance, one of which is by requiring the use of biodiesel (B20) to reduce oil and gas imports.
Apart from that, efforts to reduce the capital account deficit were also carried out through revisions of regulations concerning the Negative Investment List (DNI), inviting business interests to keep export proceeds from natural resources stored in the country and improving regulations regarding tax incentive facilities.
However, efforts to reform the trade balance and capital account will not be completed in a matter of months, which will all at once show results for improving the current account balance deficit. Everything will happen gradually.
He also reminded that the various policies, such as the one newly launched in the form of the XVI policy package, must be issued as an effort to improve and maintain the trust of market participants so that capital flows will return to Indonesia.
"Now, the momentum of foreign capital is starting to come in, especially after the central bank (BI) raised its interest. The momentum must be utilized and safeguarded. If this momentum passes, we must prepare a policy again which may only be made in three or six months," he said.
Nasution stressed that the problem of the current account deficit issue existed since Indonesia was established and that this problem could not be resolved 100 percent. However, at least various improvements that are made can have a positive impact and strengthen the overall economic fundamentals.
Reporting by Satyagraha
Editing by Andi