Figure 13:  Indonesia Balance of Payments Position, 2011:Q2-2014:Q2 (USD Billion)
Indonesian Balance of payments has registered improvement  

Source: Bank Indonesia and CEIC (2014)

Indonesian balance of payments in quarter II-2014 has improved. The Surplus on the balance of payments had increased by 107.95% from the previous quarter to reach USD 4.3 billion. Based on year-on-year calculation, the balance of payments position as this edition went to press was far better than the condition in quarter II-2013, which posted a deficit of USD 2.48 billion. During this quarter, the increase in the surplus was attributable to the surplus on the capital and financial account which was larger than the deficit registered on the current account. The surplus on the capital and financial account rises to USD 1.9 billion, larger than the increase in deficit registered on the current account.
The deficit on the current account soared in quarter II-2014. The deficit of the current account increased by USD 4.15 billion in quarter I-2014  to reach the level of USD 9.11 billion. The rise in the deficit was as a result of deterioration of the balance of trade in goods, balance of trade in services, and the primary income balance. With regards to the balance of trade in services, the deterioration was attributable to the increase in the use of imported freight and foreign financial services. Meanwhile, with respect to primary income balance, the deterioration in performance was attributable to the increase in government obligations to foreign direct and portfolio investments in Indonesia that reached USD 1.19 billion.
The surplus on the capital and financial account in quarter II-2014 registered an increase. In quarter II-2014, the surplus on the capital and financial account was USD 14.51 billion, which in percentage terms represented an increase of 89.78% over the surplus registered in quarter I-2014 (USD 7.65 billion). The position on the capital and financial account by and large rises whenever the net flow of foreign direct investment as well as ‘other investments’ register a surplus. The same is evident if viewed on a y-o-y basis, whereby the surplus on the Indonesian capital and financial account posted an increase of 68.23% (surplus in quarter II-2013 was USD 8.63 billion). read more

Based on month-to-month trajectory, Indonesia’s trade balance moved from a surplus of USD 0.67 billion in March 2014 into a deficit of USD 1.96 billion in April 2014. The decline was due to a combination of factors that included contraction of exports by USD 0.9 billion and an increase in imports of USD 1.73 billion compared with the level in the previous month.  The total value of exports declined because of a contraction in both oil and gas as well as non-oil and gas exports.  Meanwhile, total value of imports increased, driven largely by imports of non-oil and gas commodities.  In general, Indonesia’strade balance posted a deficit of USD 0.89 billion during January-April 2014 period. That said, the deficit posted during January-April 2014 period, is smaller than USD 1.94 billion recorded during the same period in 2013. read more