RI's balance of payments posts $4.2b surplus
RI's balance of payments posts $4.2b surplus
Dow Jones, Jakarta
Underpinned by resilient exports, Indonesia's balance of
payments recorded an estimated surplus of US$4.2 billion last
year, up from $4.0 billion in 2002, the central bank said.
Gains in the country's current account and capital inflow
exceeded expectations last year, despite lingering concern over
the impact of the Oct. 2002 Bali bombings on the local economy,
Bank Indonesia Governor Burhanuddin Abdullah said in a speech to
bankers on Friday evening.
Exports rose to an estimated $62.9 billion last year from
$59.2 billion in 2002, which helped drive gains in the current
account, he said.
Capital inflows also rose last year, due to the influx of
funds to the local capital markets, Burhanuddin said.
He didn't provide estimates for last year's current account or
capital inflows.
Indonesia's stock market advanced 62 percent last year, making
it the second best performing bourse in the region after
Thailand. The Jakarta Stock Exchange's main index recorded a
fresh all-time closing high of 753.692 points as improvement in
Indonesia's economic and political landscape helped buoy investor
confidence.
Offshore debt servicing by local companies last year was lower
than expected as companies managed to restructure some of their
offshore borrowings, the central bank governor also said.
Indonesia's gross foreign exchange reserves rose to $36.3
billion at the end of 2003 from $32.0 billion a year earlier, he
said.
In terms of downside risks, however, the central bank governor
warned that the expected increase in global interest rates in the
second half of this year may slow portfolio capital inflows into
Indonesia.
The continued appreciation of the regional currencies against
the U.S. dollar, rising trade protectionism such as the U.S.'
Bioterrorism Act, and rising competition from China could also
hurt Indonesian non-oil and gas exports, he added.
Separately, an official of the central bank said on Monday
that Indonesia's total debt repayment is expected to reach $21.01
billion this year, down from the estimated $28.31 billion in
repayment made last year.
However, the official of BI's Foreign Affairs Directorate told
Dow Jones Newswires that the actual amount could be very
different as some companies might restructure their debts.
The official said the government is likely to pay off $9.02
billion in debt this year, while companies operating in Indonesia
would pay off $11.99 billion.
Around $16.24 billion of the total amount would be payment of
principal, and the remaining $4.77 billion would be interest,
said the official.