Jakarta (ANTARA) - Bank Indonesia (BI) Governor Perry Warjiyo lowered his current account deficit (CAD) projection this year, from 0.6-1.4 percent to 0-0.8 percent of the gross domestic product (GDP).

"The CAD will also remain low in 2022, thereby supporting the resilience of Indonesia's external sector," the governor noted in Jakarta, Tuesday.

Warjiyo remarked that the current account for the third quarter of 2021 was expected to record another surplus, driven by the trade balance surplus that increased to US$13.2 billion, the highest since the fourth quarter of 2009.

This performance was supported by an increase in the exports of key commodities, such as crude palm oil (CPO), coal, organic chemicals, and metal ores, amid rising imports, especially of raw materials, in line with improvements in the domestic economy.

Meanwhile, he noted that the capital account surplus might increase in line with the inflow of foreign capital, both foreign investment and portfolio investment.

"In the third quarter of 2021, portfolio investment flows recorded a net inflow of US$1.3 billion," Warjiyo pointed out.

According to the governor, portfolio investment flow will continue from October 1, 2021, to October 15, 2021, recording inflows of US$200 million.

Foreign exchange reserves at the end of September 2021also increased to US$146.9 billion, equivalent to financing 8.9 months of imports or 8.6 months of imports and servicing government external debt, and exceeding the international adequacy standard of about three months of imports. (

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Translator: Agatha O, Azis Kurmala
Editor: Suharto
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