Current account balance expected to improve: BI

Current account balance expected to improve: BI

Endy Dwi Tjahyono. (ANTARA)

However, it is no cause for concern as the deficit would be a deficit with higher quality."
Jakarta (ANTARA News) - Bank Indonesia (BI) predicted that the countrys current account deficit would narrow with the declining trend of oil fuel imports and consumption in the country.

Head of the balance of payment division of the central bank Endy Dwi Tjahyono, the government policy in oil fuel subsidy had positive impact on the countrys current account balance.

Imports of oil totaled 83 million barrels in the first quarter of this year, down from 96 million barrels in the last quarter of 2014, Endy said here on Friday.

Meanwhile the current account deficit narrowed to 3.8 billion or 1.8 percent of the countrys Gross Domestic Product (GDP) from US$6.2 billion or 2.81 percent of the GDP in the last quarter of 2014.

Endy said if the government could implement its infrastructure projects soon, imports of basic material would rise potential to result in current account deficit to widen.

"However, it is no cause for concern as the deficit would be a deficit with higher quality," he said.

It would be the same as the deficit in the first quarter of 2015 which was attributable more to consumption, he added.
(Uu.H-ASG/A014)

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