Indonesia's Q3 current account surplus biggest in 12 years
JAKARTA : Indonesia's third-quarter current account racked
up a surplus of US$4.5 billion or 1.5per cent of GDP, the largest in 12 years,
as merchandise exports got a boost from high commodity prices, central bank
data showed on Friday.
Prior to the COVID-19 pandemic, Indonesia had since late
2011 had a persistent current account deficit that it covered with portfolio
inflows. This had caused the rupiah currency to swing significantly during
times of capital outflows.
But as the pandemic-induced economic recession suppressed
demand for imports and exports surged due to the commodity price upcycle, the
resource-rich nation has been able to improve its external balance.
The current account surplus in the July-September period was
the biggest since the fourth quarter of 2009 as a percentage of gross domestic
product, according to central bank data.
Indonesia had a US$2 billion deficit on the current account
in the second quarter, or 0.7per cent of GDP.
The third-quarter current account surplus helped Indonesia
post a surplus of US$10.7 billion on the balance of payments (BoP), which
compared with a deficit of US$0.4 billion in the previous three months.
"When we have a BoP surplus, our foreign exchange reserves
will rise and that should be positive for the rupiah for the short to medium
term," said Josua Pardede, Bank Permata's economist.
"This could also offset the impact of (the U.S.)
tapering this year or any accelerated Fed fund rate hike next year," he
added.
Indonesia reported a record US$5.7 billion surplus in trade
in goods in October, boosted by shipments of coal, palm oil and steel, which
would bode well for the fourth-quarter current account.
Southeast Asia's largest economy is on track to post its
first full-year current account surplus in a decade in 2021, reaching 0.1per
cent of GDP, Bank Mandiri's economist Faisal Rachman said in a note.
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