As a result of those conditions, the amount of Indonesia`s foreign exchange reserves rose from 96.2 billion US dollars at the end of 2010 to 110.1 billion US dollars or the equivalent of 6.4 months of imports and sovereign debt repayments a year late
Jakarta (ANTARA News) - Indonesia`s balance of payments in 2011 recorded a surplus of 11.9 billion US dollars consisting of current, capital and financial transactions, a Bank Indonesia (BI) or central bank official said.

The current transactions surplus was supported by the country`s export performance which remained fairly high despite weakened world demand, said Dyah NK Makhijani, a BI official in charge of strategic policies.

The capital and financial transactions surplus stemmed from increases in direct foreign investment flows and in disbursement of the private sector`s foreign loans in conjunction with a conducive investment climate and a well preserved macroeconomic stability, she said.

As a result of those conditions, the amount of Indonesia`s foreign exchange reserves rose from 96.2 billion US dollars at the end of 2010 to 110.1 billion US dollars or the equivalent of 6.4 months of imports and sovereign debt repayments a year later.

On a quarterly basis, Indonesia`s payments balance showed positive performance in the first and second quarters of 2011 among other things because export commodity prices were still rising and foreign portfolio investments flowing in briskly. .

In the third quarter, the payments balance showed a deficit , especially as a consequence of the financial crisis in Europe which triggered a reverse flow in foreign portfolio investments. Negative pressure on the payments balance diminished in the fourth quarter after foreign portfolio investors returned and disbursement of private sector foreign loans rose significantly.

Allthough as a whole, the payments balance performed better in the fourth quarter, there was a deficit in current transactions. The deficit of about 0.4 percent of Gross Domestic Product happened because imports continued to rise on strong domestic demand and exports declined on weakened world demand for the country`s export commodities.(*)

Editor: Heru Purwanto
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