CAD Starts To Widen In 1Q17, BOP Surplus Sustains

Economic Research	15 May 2017
Indonesia
Economic Update
CAD Starts To Widen In 1Q17, BOP Surplus Sustains Indonesia’s current account in its BOP registered a slightly higher deficit of USD2.4bn, or 1% of GDP in 1Q17. Moving forward, we expect the CAD to widen to USD19.4bn or 2% of GDP in 2017, from a deficit of USD16.9bn (-1.8%of GDP in 2016). This is on expectations of: 1. A smaller surplus in the merchandise trade account due to growing imports; 2. A larger deficit in the services account. Financial account recorded a higher surplus. The financial account, however, recorded higher inflows of +USD7.9bn in 1Q17, from +USD7.6bn in 4Q16. It stood at +USD9.8bn in 3Q16. Economist:  Rizki Fajar| +6221 2970 7065