BOP Indonesia

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INDONESIAS

BALANCE OFPAYMENTS

November 2011

IndonesiasBalance Of

Payments

Presented By -

Anupam Shukla


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About Indonesia Officially called the Republic of Indonesia.

Its a cluster of islands comprisingapproximately 17,508 islands.

Its the world's fourth most populous country.

Capital JAKARTA.

Population - 237,424,363 , Density 123.76/Km2 (2011 ESTD.)

Current President - Susilo Bambang Yudhoyono

GDP PPP - $1.126 trillion.

Nominal - $834.331 billion.

Currency - Rupiah (IDR)


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Also a founding member of ASEAN and a

member of the G-20 major economies.

The Debt ratio to the GDP is 26%

The GDP growth rate is 6.1% (2011 ESTD.)

The industry sector is the economy's largestand accounts for 46.4% of GDP, this is followedby services 37.1% and agriculture 16.5%.

Population Employment Services 48.9%

Agriculture 38.3%

Industry 12.8%

According to World Trade Organization data,

Indonesia was the 27th biggest exporting


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Major Imports - Machinery and equipment,Chemicals, Fuels, and Food items.

Major Exports - Oil and gas, Electrical

appliances, Plywood, Rubber, and Textiles. Standard Of Living - 13.3% of the population is

living below the poverty line, and theUnemployment rate is 7.1%

Current Inflation rate is 3.75% (Lowest since1998)


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Major Import Partners


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Major Export Partners


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Balance Of Payment

Balance of payments (BoP) accounts arean accounting record of all monetarytransactions between a country and the rest

of the world.The BoP accounts summarize international

transactions for a specific period, usually ayear, and are prepared in a single currency,

typically the domestic currency for thecountry concerned.

Sources of funds for a nation, such asexports or the receipts of loans and

investments, are recorded as positive orsurplus items.


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Composition of Balanceof Payments

The two principal parts of the BoP accountsare the current account and the capitalaccount.

Current A/C - shows the net amount a

country is earning if it is in surplus, orspending if it is in deficit. It is the sum ofthe balance of trade (net earnings onexports minus payments for imports), factorincome (earnings on foreign investmentsminus payments made to foreign investors)and cash transfers.

Capital A/C - records the net change inownership of foreign assets. It includesthe reserve account (the foreign exchange


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Fundamental Equation

Current A/C + Capital A/C

+ Balancing Figure = 0

The balancing item, which maybe positive or negative, is simply

an amount that accounts for anystatistical errors and assures thatthe Current and Capital accounts

sum to ZERO. By the principles of


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(In Million US$)

Items 2009 2010 2011Growth

Rate

I. Current Account 10.628 5.144 2.07 -80.52%

A. Goods 30.932 30.627 7.44 -75.95%

B. Services -9.741 -9.324 -11.823 21.37%

C. Income -15.14 -20.79 -25.667 69.53%

D. Current Transfers 4.578 4.63 4.212 -7.99%

II. Capital & Financial Account 4.852 26.62 14.018 188.91%

A. Capital account 96 50 1 -98.96%

B. Financial Account 4.756 26.571 14.017 194.72%

III. Total (I+II) 15.481 31.765 16.088 3.92%


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Interpretation Indonesia's balance of payments for 2011

registered a surplus of US$11.9 billion.Contributing to this performance weresurpluses in the current account and thecapital and financial account at US$2.1 billionand US$14.0 billion respectively.

The current account surplus was sustained byrespectable export growth despite slackeningworld demand. Similarly, the capital andfinancial account surplus was bolstered byhigher inflows of foreign direct investment (FDI)and drawing on private external debt inkeeping with the conducive investment climate

and stable macroeconomic condition.


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References Google

Wikipedia

www.bi.go.id

www.morganstanley.com

www.dbsvresearch.com


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