Jakarta, CNBC Indonesia – Coronavirus pandemic (Coronavirus Disease-2019/ Covid-19) makes human life abnormal. But after more than a year, now, little by little, the order of life is starting to return to its former state.
One of the things that the pandemic makes abnormal is the Indonesian Balance of Payments (NPI). In the first quarter of 2021, the NPI posted a surplus of US $ 4.06 billion after the previous quarter’s deficit of US $ 156.39 million.
The NPI consists of two major items, namely the current account (current account) as well as capital and financial transactions. During a pandemic, it seems that these two posts are not normal.
The current account in the third and fourth quarters of last year was able to record a surplus of US $ 1.08 billion (0.41% of Gross Domestic Product / GDP) and US $ 892 million (0.33% of GDP) respectively. This is the first surplus since 2011.
At that time, the surplus occurred because the income from the export-import of goods was able to close the ‘hole’ in services and primary income, something that was very rare. Understandably, the corona virus is a global pandemic that has caused many countries to close themselves off and limit people’s activities. This makes the flow of trade seem paralyzed so that spending on services such as shipping (freight) to be reduced.
However, in 2021, when life begins to normalize a little with the arrival of the anti-corona virus vaccine, the flow of world trade will again blossom. This is reflected in the Baltic Dry Index which had jumped to its highest level since 2009.
In the first quarter of 2021, the goods balance is still a surplus of US $ 7.91 billion. However, it could not cover the deficit in the services account (-US $ 3.42 billion) and primary income (6.92 billion). So the current account returns to the deficit zone, which is minus US $ 996.83 million or 0.36% of GDP.
“In line with the positive export performance and continued improvement in domestic demand, import performance has also increased quite sharply, thus holding back a further goods balance surplus. Meanwhile, the services account deficit has increased, partly due to a widening transportation services deficit due to an increase in service payments. freight along with the increase in imports of goods. On the other hand, the primary income account deficit was recorded lower than the achievement in the previous quarter in line with the decline in coupon payments and dividends for portfolio investment, “said a written statement from BI.
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