Kedutaan Besar Republik Indonesia
Ottawa
Embassy of the Republic of Indonesia
Ambassade de la RÉpublique d'Indonésie

Bank Indonesia Targets Current Account Deficit of between 0.25% a�� 2.5%

Bank Indonesia (BI) has targeted for Indonesiaa��s current account deficit to stand at a sustainable level or between 0.25 percent and 2.5 percent of Gross Domestic Product (GDP) in line with the latest economic situation.

a�?What we want to say is, this should not have to be a surplus — because an economy can sometimes have a a�?hard landinga�� a�� but a deficit with a a�?sustainablea�� figure, which is in a range of between 0.25 percent and 2.5 percent,a�? said BI Governor Agus Martowardojo in Jakarta on Wednesday as quoted by Antara news agency.

Agus said Indonesiaa��s current account deficit had declined to US$8.4 billion or 3.8 percent of GDP in the third quarter of this year from $9.9 billion or 4.4 percent in the previous quarter.

However, he said, there should be more efforts to push down current account balance that had suffered a deficit for 26 months so that Indonesia could be a step ahead and slip away from middle income traps.

a�?Indonesia has the potential to become an a�?upper middle incomea�� country due to its middle income class that has continued to expand, its various demands, and its complex structure. If it is not addressed, we will fall into a�?middle income trapa�� and suffer a delay in becoming an upper middle income country,a�? said Agus. (ebf)

Source : www.thejakartapost.com, 27 November 2013