(TIS) - The following is a statement from Bank Indonesia deputy governor Perry Warjiyo, after the current account deficit widened to 4.4% in the second quarter of the year. The full text is available at BI's website.

Current Account expected to improve in Semester II 2013

The current account is expected to improve in the second semester of 2013. "This outlook is based upon the projected global economic recovery and the effect of domestic economic corrections," stated the Deputy Governor of Bank Indonesia, Perry Warjiyo. On one hand, the promising outlook for the global economic recovery, coupled with climbing international commodity prices predicted in semester II-2013, is forecast to bolster the performance of national exports. On the other hand, a domestic economic slowdown along with a depreciating rupiah exchange rate will successfully slow the rate of imports. Furthermore, imports of oil are also projected to subside, among others influenced favourably by the impact of recent subsidised fuel price hikes in June and a deceleration in domestic economic expansion.

Holistically, the array of aforementioned circumstances will reduce and help control the current account deficit during the second semester of 2013. Perry Warjiyo emphasised that, looking forward, the potential reduction in the current account deficit is expected to increasingly underpin the prospect of a sustainable external balance as the deficit is sufficiently offset by foreign capital investment, in the form of direct investment (FDI) and portfolio investment.