The surplus contributed by current, capital and financial transactions to make the country`s foreign currency reserves in the period to increase to US$105.7 billion which is equal to 6.2 months of imports and for paying government`s overseas debts, he said.
He said the declining trend in current account surplus since the fourth quarter of 2009 stopped at the first quarter of 2011 with a surplus booked at US$1.9 billion or higher than the surplus of US$1.1 billion in the fourth quarter of 2010.
The improvement in the current transactions was driven by the decline in the income payments especially debt interest and travel service payment following the completion of hajj season which are all seasonal in nature.
The strengthening of current accounts has been further hindered by the decline in the performance of goods trade balance due to high oil imports as a result of decreasing national production and increasing fuel oil consumption in the midst of increasing oil price in the international markets.
Capital and financial transactions in the first quarter of 2011 meanwhile recorded a surplus of US$6.2 billion, boosted by direct investment performance and portfolio investment.
Direct investment in Indonesia is still increasing in line with the investment climate which is more conducive and macro-economic stability which has been maintained.
He said the strong flow of portfolio investment was driven by the excess of liquidity in the global financial market which is still high and the relatively attractive investment yields in the country.(*)
(H-YH/HAJM/A014)
Editor: Ruslan Burhani
Copyright © ANTARA 2011
