"The economic growth is supported by sources of growth that grew more balanced in line with increasing investment performance and solid exports."
Manado, North Sumatra (ANTARA News) - Bank Indonesia predicts there will be a surplus of around US$16.4 billion in the country`s balance of payments that come from current, capital or financial transactions.

"Although it is quite big it is still below that of 2010 that reached US$30 billion. However the achievement is quite high," BI deputy governor Ardhayadi Matroatmodjo said at a meeting with North Sulawesi provincial government officials, local bankers, members of the local chapter of the chamber of commerce and industry and real sector associations here on Monday.

He said although surplus in the balance of payment this year would be lower than last year`s the country`s foreign exchange reserves would still continue to grow to reach US$112.6 billion up from US$96.2 billion at the end of 2010.

He said the foreign exchange reserves could cover imports for 7.5 months, short-term debt payments as well as strengthen the country`s economic resilience to mitigate various external shocks that may happen.

Until the end of March 2011 Ardhayadi said the country`s foreign exchange reserves had reached US$105.7 billion to equal imports for 6.3 months and foreign debt payments.

The trade surplus would also be boosted by exports which are predictably still growing quite high this year and inflows of foreign capital and direct investment which are predicted to remain high.

The conditions, he said, would make the country`s domestic economy to grow from 6.0 percent to 6.5 percent and 6.1 percent to 6.6 percent in 2012.

"The economic growth is supported by sources of growth that grew more balanced in line with increasing investment performance and solid exports," he said.

The role of investment especially foreign investment, he said, is predicted to continue to increase in line with the strong internal as well as external demand and improving sovereign credit rating.

"Sectorally all economic sectors are projected to grow high with the highest at the transportation and communications sectors, hotel and restaurant and construction sectors," he said.
(Uu.H-YH/HAJM/A014)

Editor: Priyambodo RH
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