Balance of payments to record $7b surplus in 2017

Balance of payments to record $7b surplus in 2017


Jakarta — Bank Indonesia (BI) projects the country’s balance of payments (BoP) will reach a surplus of US$7 billion this year from US$12 billion last year. “We understand that last year there was the tax amnesty [which caused] hefty fund inflows so that the US$7 billion figure [this year] is good enough given our sound capital and financial accounts,” BI Governor Agus Martowardojo said on Monday (28/08). Directorate General of Taxation data show that the tax amnesty resulted in Rp 147 trillion (US$11 billion) in asset repatriation, while the government secured US$135 trillion in revenue from penalties. The BoP records economic transactions between residents and non-residents in a certain period of time. It consists three main components, namely current account, capital account and financial account. Indonesia’s BoP stood at a surplus of US$700 million at the second quarter supported by a higher surplus and in capital and financial transactions compared to the current account deficit (CAD). The CAD stood at US$5 billion or 1.96 percent of gross domestic product (GDP) during the same period, BI data show. The central bank forecasts the CAD to hover at between 1.5 to 2 percent of GDP this year and from 2 percent to 2.5 percent in 2018, below the safe limit of 3 percent.

Source: thejakartapost