Indonesia's trade balance for 2023 recorded a surplus of USD 6.3 billion, surpassing the USD 4.0 billion surplus in 2022, according to Erwin Haryono, Head of the Communication Department at Bank Indonesia. This positive trend is primarily attributed to the robust performance of capital and financial transactions. Erwin emphasized that the overall balance of payments in 2023 reflects the resilience of the external sector amid continued global economic uncertainties. During 2023, the current account saw a controlled deficit of USD 1.6 billion, equivalent to 0.1% of the GDP. This contrasts with the previous period, where the current account boasted a surplus of USD 13.2 billion, or 1.0% of the GDP. The shift is influenced by a decline in the trade balance surplus, aligning with global economic slowdown and commodity price decreases, coupled with strong domestic demand. On the other hand, the deficit in the services account decreased due to the rise in international tourists, reflecting the ongoing recovery in the tourism sector.
Further, Erwin highlighted a significant improvement in capital and financial transactions for 2023, registering a surplus of USD 8.7 billion compared to a USD 8.7 billion deficit in 2022. This enhancement is supported by surpluses in direct and portfolio investments amidst the prevailing global financial market uncertainties. Indonesia's foreign exchange reserves stood at USD 146.4 billion at the end of December 2023, up from USD 137.2 billion at the end of December 2022. Erwin clarified that this reserve position is equivalent to financing 6.5 months of imports and government external debt, surpassing the international adequacy standard of around 3 months of imports. Looking ahead, Erwin noted that Bank Indonesia will continue monitoring global economic dynamics that may impact the prospects of the balance of payments, while reinforcing policy responses in close collaboration with the government and relevant authorities to strengthen the resilience of the external sector.
