Indonesia: Current Account is expected to show a small deficit in 2022 – UOB

Economist at UOB Group Enrico Tanuwidjaja reviews the latest Current Account results in the Indonesian economy.

Key Takeaways

“Indonesia’s current account posted a surplus of USD0.2bn (0.1% of GDP) in 1Q22, smaller than USD1.5bn (0.5% of GDP) in 4Q21.”

“On the back of sustained (though narrowing) outflows in the financial and capital accounts, Indonesia posted a larger BOP deficit of USD1.8bn in 1Q22 vs. USD0.8bn deficit in 4Q21.”

“For 2022 we revised our forecast that current account position will now return to a smaller deficit of just 0.2% (viz. 0.5% previously) of GDP as imports demand is likely to come back more moderately, while exports revenue is expected to be stronger than initially projected.”