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Jakarta (ANTARA News) - Bank Indonesia Governor Darmin Nasution said the country`s foreign exchange reserves were enough for six months of imports and paying government debts.

He said here on Friday until August 31, 2010 the reserves reached US$81.3 billion.

He said the inflow of foreign capital in the form of foreign capital investment rose quite high although it was still dominating the portfolio sector.

"This happens in line with improving perception of foreign investors on the prospect of Indonesia`s economy," he said.

Regarding trade balance he said surplus was expected to drop due to increasing imports following increasing domestic economic activities.

"Surplus in the balance of payment, investors` positive risk perception and attractive return have driven appreciation of the rupiah exchange rate in August, 2010," he said.

Darmin said although the pace of import development was faster than exports` Bank Indonesia believed Indonesia would still be able to enjoy a surplus in its trade balance.

The Central Bureau of Statistics (BPS) reported earlier the balance of trade in July 2010 had a deficit. Darmin predicted the deficit could still happen in the months ahead this year.

"Before it was not negative but as imports grew higher that exports next year we believe the trade surplus will be smaller," he said.

Darmin said capital inflow remained large so that the capital and financial balance would remain positive.

"The foreign exchange reserves would remain positive and increasing although the hike will not be as high as last year`s," he said.

(H-YH/F001/S026)

Editor: Suryanto
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