Strong commodity exports and an influx of foreign funds into the local capital markets pushed Indonesia's balance of payments during the second quarter to a surplus of US$3.63 billion, the central bank reported Thursday.
The surplus resulted from the current account -- the balance's component of goods and services trade and other transfers -- rising to $2.55 billion from $1.71 billion during the second quarter last year.
Indonesia's capital and financial account -- the component of investments -- also surged to $2.21 billion from only $25 million.
Adding to 2007's first quarter figures, the overall surplus until June reached some $8 billion, with Bank Indonesia expecting that figure to reach $11.49 billion by the end of the year.
Indonesia's foreign exchange reserves was at $50.92 billion and is expected to reach $54.36 billion by the end of the year. The latest figure, on Aug. 31, was $51.42 billion.
Triono Widodo, BI director for monetary statistics, said the current account surplus mostly came from non-oil and gas exports, which grew 20 percent on-year on strong global demand, and prices for Indonesia's commodities, which registered a $7 billion surplus.
Indonesia also saw gas exports at a $2.9 billion surplus, making the country a net energy exporter by offsetting an oil trade deficit of $1.6 billion. The deficit in services trade, meanwhile, rose to $2.8 billion and transfers saw a $3.1 billion deficit.
In the financial account, Triono said a rush of investors in a still liquid global market buying up Indonesian assets had increased the surplus in portfolio investments to $5.7 billion, from $700 million last year.
BI is however expecting a slight slowdown in both exports and portfolio investments in the second half due to the effects of the recent sub-prime mortgage crisis in the U.S. which is threatening the country's economic growth.
The surplus in direct fixed capital investment also rose to $1.3 billion in the second quarter from $1.1 billion last year, due to an improving business climate.
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