"The current account deficit fell faster than expected to 1.98 percent of GDP or lower than BI`s previous estimate of 3 percent," Deputy Governor of the central bank Perry Warjiyo said.
Jakarta (ANTARA News) - Bank Indonesia (BI) said the countrys current account deficit was US$4 billion or 1.98 percent of the Gross Domestic Product (GDP) in the last quarter of 2013.

"The current account deficit fell faster than expected to 1.98 percent of GDP or lower than BIs previous estimate of 3 percent," Deputy Governor of the central bank Perry Warjiyo said here on Thursday.

The current account deficit declined from US$9.9 billion or 4.4 percent of GDP in the second quarter and from US$8.4 billion or 3.85 percent in the third quarter of 2013.

Perry attributed the progress made to cut the deficit mainly to improvement in trade balance for non-oil/gas commodities.

In the fourth quarter of 2013, a surplus of US$7 billion was recorded in the trade balance , up from US$2.8 billion in the previous quarter.

Perry said the progress made in slashing the current account deficit had been in line with the BI policy.

"The rupiah weakening had also caused a decline in imports of commodities other than oil and gas," he said.

The country also recorded a surplus of US$9.2 billion in capital and financial account in the last quarter of 2013, resulting in a US$4.4 billion surplus in its balance of payments, he said.

Meanwhile, BI Governor Agus Martowardojo said the central bank decided in the monthly meeting of its board of governor to maintain its benchmark interest rate of 7.5 percent "as it is considered consistent with the tight monetary policy with an inflation target of 3.5-5.5 percent this year and 3-5 percent in 2015.

Agus said the central bank would continue to strengthen its coordination with the government to keep inflation under control and reduce current account deficit.

"The board of governors agreed that policy mix by the government and BI has succeeded in improving economic stability marked with the inflation being under control and narrowing current account deficit," he said.

The central bank has maintained the BI rate at 7.5 percent in three successive months. (*)

Editor: Heru Purwanto
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