Bank Indonesia (BI) recorded that Indonesia’s 2Q21 Balance of Payments (BOP) experienced a deficit of USD 400 million. This figure is much lower than the previous quarter which recorded a surplus of more than USD 4 billion. In more detail, the curren account deficit (CAD) in 2Q21 was valued at USD 2.2 billion, or 0.8% of Gross Domestic Product (GDP). 2Q21 CAD was larger compared to 1Q21 which was at USD 1.1 billion or 0.4% of GDP. NHKSI Research see that 2Q21 figures were influenced by an increase of surplus in the goods balance, due to increased demand from major trading partner countries. Meanwhile, the primary income account deficit was in line with the increase in payment of investment returns. We also see that the increase in the services account deficit was caused by a widening deficit in transportation services, in line with the increase in payments for freight services for imports of goods. This caused foreign exchange reserves of 2Q21 to be booked at USD 137.1 billion, still far above international adequacy standards.
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