"Short term challenge that we have to deal with is problem in balance of payments. Foreign investors want to see how we solve our short term problem," Senior Deputy Governor of Bank Indonesia (BI) Mirza Adityaswara said.Jakarta (ANTARA News) - Senior Deputy Governor of Bank Indonesia (BI) Mirza Adityaswara said problem in Indonesia`s balance of payments needs to be sorted out immediately to regain international confidence in the country`s economy.
"Short term challenge that we have to deal with is problem in balance of payments. Foreign investors want to see how we solve our short term problem," Mirza said here on Thursday.
Bank Indonesia recorded a deficit of US$2.5 billion in its balance of payments in the second quarter of 2013, down from US$6.6 billion in the previous quarter.
Despite the improvement, the government and BI should be able to cut the deficit further by reducing imports, he said.
"In short term we must reduce imports as it is still difficult to raise exports in short term despite favorable signs with China succeeding in halting a downtrend in its economic growth," he said.
He said the global economy provides a big challenge especially for Indonesia after the US government shutdown.
"The US government has in the past three days been locked in debate over state budget and a big part of the government agencies have been shutdown," he said.
If the problem besetting the United States is allowed to last too long other countries would also feel the impact, he said.
He said in short term there has been no sign of a revival of Indonesian exports to the United States , but the prospect is encouraging in mid term. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
