"We will likely continue to have deficit, even bigger , but we hope to offset the deficit with growing FDI," Finance Minister Agus Martowardojo said.Jakarta (ANTARA News) - Finance Minister Agus Martowardojo said the government will seek to push foreign direct investment (FDI) to offset the country`s current account deficit.
"We will likely continue to have deficit, even bigger , but we hope to offset the deficit with growing FDI," Agus said here on Tuesday.
Success in boosting FDI will increase capital account that would redress the country`s balance of payments, he said.
He said the government will continue to improve coordination to cope with the current account deficit which is now 3.1 percent of the country`s GDP.
He said shrinking prices of some of the country`s export commodities contributed to the decline in exports resulting in deficit in the country`s balance of payments.
Meanwhile, imports have increased not only because of the domination of capital goods and half finished goods but also because of large imports of oil fuels, he said.
"This is the condition we are in , but we are optimistic that we could go through it with good coordination," he said.
Based on data from Bank Indonesia , the country had a current account deficit of US$6.9 billion in the second quarter of 2012, widening from US$3.2 billion in the previous quarter.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
