A deficit of US$2.5 billion was recorded in the country`s balance of payments in the second quarter of this year contributing to pressure on the country`s currency rupiah.
The prediction is based on expectations that the deficit will narrow in oil and gas trade balance.
A big deficit was recorded in the oil and gas trade on growing imports especially ahead of the Islamic holy day festivities Idul Fitri.
A cut in imports of oil and gas would result in narrowing current account deficit, the central bank said.
The current account deficit would also decline with weak domestic demand , the central bank said .
A big surplus is expected in capital and financial account on growing inflows of foreign capital including foreign direct investment and portfolio investment , enough to offset deficit in the current account .
Bank Indonesia also described as "healthy enough" the foreign debts of the private sector as most of the debts are long term ones and dominated by export oriented companies.
The country`s foreign exchange reserve by the end of August was recorded at US$93 billion , relatively stable up slightly from US$92.7 billion by the end of July .
The August`s foreign exchange reserves were enough to finance imports and service government`s foreign debts for 5 months.(*)
Editor: Heru Purwanto
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