"This net outflow of foreign capital is in line with the high uncertainty in the global financial markets," Director of the BI Department of Economic and Monetary Policy Wahyu Agung Nugroho noted during a virtual seminar titled "Managing Inflation and Anticipating Economic Stagnation" in Jakarta, Thursday.
However, a net inflow of foreign capital to the Indonesian financial market amounted to US$200 million in the second quarter of 2022.
With this condition, Nugroho estimates that Indonesia's capital and financial account balance will be maintained, especially supported by capital inflows in the form of Foreign Investment (PMA).
In addition to the capital and financial account balances, the current account balance is also projected to be maintained, with an estimated surplus in the second quarter of 2022, which is higher than the previous quarter.
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The increase in the current account surplus was mainly supported by an increase in the non-oil and gas trade balance surplus, which was in line with the continued high commodity prices.
"Our total trade balance in the second quarter of 2022 is estimated to reach US$15 billion, quite high as compared to the same period in the previous year," he stated.
With the improvement in the current account as well as the capital and financial transactions, he estimates that Indonesia's balance of payments (BOP) in 2022 will be maintained, with the current account in the range of a surplus of 0.3 percent to a deficit of 0.5 percent of the gross domestic product (GDP).
Meanwhile, the position of Indonesia's foreign exchange reserves at the end of June 2022 was recorded at US$136.4 billion, which is equivalent to financing 6.6 months of imports or 6.4 months of imports and servicing government external debt, and is above the international adequacy standard of around three months of imports.
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Translator: Agatha O, Azis Kurmala
Editor: Suharto
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