Indonesia’s Current Account Swings to First Surplus Since 2011

(Bloomberg) -- Indonesia’s current account balance in the third quarter swung to a surplus for the first time in nine years, thanks to rising exports as domestic demand for imports remains weak.

The gap was $1 billion in the July-September period, or 0.36% of gross domestic product, according to a Bank Indonesia statement on Friday. That’s the widest surplus since the first quarter of 2011. For the full year, the central bank expects the current account deficit to be below 1.5% of GDP.

Fund inflows, as well as October’s trade surplus reaching the widest in a decade have helped the rupiah to become Asia’s best-performing currency this month, gaining 3% in November. The currency’s strength, along with low inflation and muted domestic demand gave room for the central bank to cut its policy rate to a fresh record low on Thursday.

Even after President Joko Widodo signed a law to attract investments in October, the capital and financial surplus still shrank to $1 billion from $10.6 billion in the second quarter.

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