Bank Indonesia recorded a surplus balance of payments (NPI) of US$2.6 billion during 2020. In the fourth quarter of 2020, Indonesia posted a lower deficit of around US $ 200 million thanks to a sustainable current account surplus amidst a deficit in the capital and financial account.

"This surplus continued the previous year's surplus of US$4.7 billion," said BI Executive Director Erwin Haryono in a press release on Friday (19/2).

Erwin said a decrease in the current account deficit and a surplus in the capital and financial account supported the sustainably surplus. The current account deficit in 2020 was US$4.7 billion (0.4% of GDP) or decreased from the 2019 deficit of US$30.3 billion (2.7% of GDP).

The decline in the deficit is in line with the limited export performance due to weakening demand from trading partner countries affected by the Covid-19, amid restrained imports due to weak domestic demand.

Meanwhile, capital and financial transactions in 2020 would remain a surplus of US$7.9 billion, in line with investor optimism for the maintained domestic economic recovery, and uncertainty on global financial markets eased, especially in the second semester of 2020.

The position of foreign exchange reserves at the end of December 2020 increased to US$135.9 billion, equivalent to 9.8 months of imports and government external debt financing, and is above the international adequacy standard.

"Going forward, Bank Indonesia will continue to pay close attention to the dynamics of the global economy that may affect the prospects for the balance of payments and continue to strengthen the policy mix to maintain economic stability, as well as strengthen policy coordination with the Government and related authorities to support external sector resilience," he stressed.