Indonesia’s Balance of Payments (BOP) improved in the third quarter of 2023 despite increasing global economic uncertainty. Indonesia’s BOP in the third quarter of 2023 recorded a significant improvement, amassing a shallower $1.5 billion deficit compared with a $7.4 billion deficit in the previous period. BOP performance was supported by improvements in terms of the current account deficit and capital and financial account deficit in the reporting period. Consequently, the position of reserve assets at the end of September 2023 remained high at $134.9 billion, equivalent to 6.0 months of imports and servicing government external debt, which is well above the international adequacy standard of three months of imports. The current account improved in the reporting period, underpinned by a solid goods and services trade balance. In the third quarter of 2023, the current account recorded a $0.9 billion deficit (0.2 percent of GDP), significantly lower from a $2.2 billion deficit (0.6 percent of GDP) in the previous period. Bank Indonesia observes stronger BOP performance in the third quarter of 2023, thereby continuing to support external resilience in Indonesia. Moving forward, Bank Indonesia will remain vigilant of global economic dynamics that could influence the BOP outlook and continue strengthening the policy mix response, supported by close policy synergy with the Government and other relevant authorities to reinforce external sector resilience. https://shorturl.at/enrHT
Source: IBP