Indonesia: 2022 Current Account deficit is seen at 0.5% of GDP – UOB

Enrico Tanuwidjaja, Economist at UOB Group, assesses the latest Current Account figures in Indonesia.

Key Takeaways

“Indonesia’s current account posted a surplus of USD 1.4bn (0.45% of GDP) in 4Q21, compared to a surplus of USD 5.0bn (1.7% of GDP) in 3Q21.”

“With that development, the total Balance of Payment (BOP) in 2021 recorded a high surplus of USD 13.5bn, supported by current transaction that recorded a surplus.”

“For 2022 we forecast that current account will return to a deficit of 0.5% of GDP as imports demand is likely to hasten up, while exports revenue is expected to moderate significantly.”