Indonesia's Foreign Capital Inflows US$6.3B in 1Q 2019
Governor of Bank Indonesia Perry Warjiyo. Photo by TheInsiderStories.

TEMPO.CO, Jakarta – Bank Indonesia (BI) Governor Perry Warjiyo estimated there would be a US$5 billion surplus in the country’ balance of payments (BoP) in the fourth quarter (4Q) of 2018 after the deficits in quarters two and three.

He stated, the improvement was fueled by capital inflows during the last quarter last year, which allowed a capital account surplus of $12 billion. Despite a surplus in the BoP, Warjiyo rated, that the current account deficit (CAD) will not be much different from Q3, expecting it to be around $8 billion.

In 3Q of 2018, the central bank reported a BoP deficit amounting to $4 billion, caused by increasing CAD. In the period, the CAD grew $8.8 billion or 3.37 percent to the gross domestic products.

At the meeting with Asia-Pacific Airbus president Jean-Marc Nasr at his office yesterday, the Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan has asked France-based commercial aircraft manufacturer to produce aircraft parts in Indonesia.

The minister also encouraged Airbus for a tie in aircraft maintenance with local partner. He gave an example, Lion Air and PT Garuda Indonesia Tbk (IDX: GIAA) have opened Maintenance, Repair, and Overhaul (MRO) in Batam and Bintan.

On the politic side, the Russian embassy has stressed that the country does not intervene in the Indonesian presidential election responding to a statement by presidential candidate Joko Widodo in Solo, Central Java, on Sunday (02/03). The incumbent said, that his contender using a foreign consultant in politics, one of them being through the theory of Russian propaganda.

The embassy closed a series of the tweets by uploading the photo of President Vladimir Putin shaking hands with President Widodo during the ASEAN-Russia Summit held in Singapore in November 2018.

Yesterday, the areas of Mentawai Islands District in West Sumatra and Nias in North Sumatera were rocked by two strong earthquakes, but there were no reports of casualties. Earthquakes regularly rock various parts of Indonesia due to the fact that the country lies on the Circumference Pacific Belt, also known as the Ring of Fire, where several tectonic plates meet and cause frequent volcanic and seismic activities.

Head of the Meteorology, Climatology, and Geophysics Agency Dwikorita Karnawati noted that Indonesia was hit by 11,577 earthquakes, with varying magnitudes and depths, hit during 2018, while just 7,172 earthquakes were recorded in 2017.

On the financial market, the Jakarta composite index fell 57.19 points, or 0.87 percent, to 6,481.54. The index of 45 most liquid stocks dropped 17.63 points, or 1.69 percent, to 1,024.04. Then, Rupiah on the spot market closed down 0.1 percent or 14 points to 13,962 per US dollar on Monday.

Happy Chinese New Year and may you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia