RHB Indonesia - CAD Starts to Rise In 1Q, BOP Surplus Continues Unknown Senin, 15 Mei 2017




Good morning,

CAD Starts to Rise In 1Q, BOP Surplus Continues
Indonesia’s current account in its BOP registered a slightly higher deficit of USD2.4bn, or 1% of GDP in 1Q17. Moving forward, the current account deficit (CAD) is expected to widen to USD19.4bn, or 2% of GDP in 2017. This is from minus USD16.3bn, or -1.8% of GDP in 2016. This is on expectations of:

1. A smaller surplus in the merchandise trade account due to growing imports;
2. A larger deficit in the services account.


¨ The financial account recorded a higher surplus. The financial account’s inflow, however, recorded a higher surplus of +USD7.9bn in 1Q17 from +USD7.6bn in 4Q16. It stood at +USD9.8bn in 3Q16.
This was due to higher inflows of portfolio investments in rupiah-denominated instruments (SUN, SPN, and stock) and the issuance of the government’s global sukuk, while foreign direct investments (FDIs) recorded lower net inflows. This was largely due to outflows of direct investment in th eoil and gas sector, and other investment deficits mainly due to the placement of private sector assets abroad.
¨ Surplus in the balance of payments (BOP) stabilised. As a result, the surplus in BOP remained unchanged at USD4.5bn in 1Q17, from the same level in 4Q16 and +USD5.7bn in 3Q16. (Rizki Fajar)

Link to report to be sent out later
Link to daily report: Indonesia Morning Cuppa 150517




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Best regards,

Helmy Kristanto
Director
Head of Indonesia Research
PT. RHB Securities Indonesia


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