Current account deficit records steep rise

[TopCat]

How to get the fund? First you can trying to invite foreign investor to funding and operating your infrastructure and services sector (airport, ports, railway, electricity, hospital, or even school) by liberalizing those sector and creating an open and fair market.

It has to be a balance approach. We have to be very careful and make sure that the domestic investment do not get overwhelmed by the FDI. Our economy must be dominated by the domestic capital. FDI is welcome in every sector but in a controlled manner.

 

[UKBengali]

It has to be a balance approach. We have to be very careful and make sure that the domestic investment do not get overwhelmed by the FDI. Our economy must be dominated by the domestic capital. FDI is welcome in every sector but in a controlled manner.

 

[Nike]

Surging April Imports Produce Indonesia's Biggest Trade Deficit in 4 Years

By : Maikel Jefriando and Nilufar Rizki | on 2:26 PM May 15, 2018
Category : Business, Economy

Jakarta. Indonesia posted its biggest trade deficit in four years in April as imports surged, wrong-footing analysts who expected a surplus for the month.

The statistics bureau said the April deficit reflected "seasonal factors" including this week's start of Ramadan, the Muslim fasting month.

Southeast Asia's largest economy had a deficit of $1.62 billion, the biggest since April 2014 while the Reuters poll forecast was for a $700 million surplus.

Imports in April soared 35 percent from a year earlier to $16.09 billion, compared with the poll forecast of 19 percent.

For the first four months of this year, there was a deficit of $1.3 billion, compared with a $5.4 billion surplus a year earlier.

Tuesday's surprise trade deficit came at time the rupiah has been under pressure due to rising US yields and oil prices and worries about capital outflows.

The trade data slightly widened its loss for the day, taking it to 14,030 to the dollar.

Although Indonesian authorities have so far just intervened in the currency market to put a floor under the rupiah, they have said they are willing to raise interest rates if need be to defend the currency. The central bank concludes a policy meeting on Thursday (15/05).

Myrdal Gunarto, an economist with Maybank Indonesia, said imports may continue to rise as domestic economic activities improve, while export growth may moderate due to a limited rebound in commodity prices.

That would lead to a bigger current account deficit of 2.2 percent of GDP in 2018, from 1.7 percent in 2017, he said, adding that this implies the dollar will strengthen against the rupiah.

In April, imports of most items rose, with notably high increases for oil and gas and some food, according to the statistics bureau.

"Imports usually rise before the start of the fasting month although I agree that [the April increase] is significant," bureau head Suhariyanto told reporters.

Suhariyanto said imports of raw materials and machinery also increased, which could mean Indonesia's manufacturing industry was boosting production.

In April, exports rose 9 percent from a year earlier to $14.47 billion, below the poll forecast of a 12 percent increase.

Reuters

Why laughing, our overall trading figures still positive, and the negative ballance is occasional not consecutive. Not to mention our tourism industry still attracting dozen millions foreign tourist bring much needed capital.

 

[Nilgiri]

Anyway, the country should focus on import of non-essentials and minimize the deficit in the service sector, such as reducing the number of pilgrimage to SA and medical treatment/pilgrimage to India. Service sector is in multi-billion dollar deficit. There is another thread on this.

It all needs more competency, more investment and less taxation/extraction/bribery from govt for all you are saying here. As @madokafc doing it in authoritarian (say legislative) counter way will be counter-productive, because again there are more socioeconomic chains they support currently (that will collapse/reduce).

It is hillarious that fat-*** babu Topcat is saying FDI (private +foreign expertise + way more well managed given ROI has to be clear and good) should be limited compared to domestic investment (loan fuelled, heavy govt intervention/management). I guess Biman and all its dependent organs are indeed classical example of nepotism projecting status quo is best.

@Mage @Ashes @Skies @Centaur

 

[bluesky]

It is hillarious that fat-*** babu Topcat is saying FDI (private +foreign expertise + way more well managed given ROI has to be clear and good) should be limited compared to domestic investment (loan fuelled, heavy govt intervention/management). I guess Biman and all its dependent organs are indeed classical example of nepotism projecting status quo is best.

@TopCat has already managed to destroy BIMAN and now he is bent on destroying BD economy with his uncouth propositions to build it. After all, he is from the Mongolian stock.

 

[24 Hours]

It all needs more competency, more investment and less taxation/extraction/bribery from govt for all you are saying here. As @madokafc doing it in authoritarian (say legislative) counter way will be counter-productive, because again there are more socioeconomic chains they support currently (that will collapse/reduce).

It is hillarious that fat-*** babu Topcat is saying FDI (private +foreign expertise + way more well managed given ROI has to be clear and good) should be limited compared to domestic investment (loan fuelled, heavy govt intervention/management). I guess Biman and all its dependent organs are indeed classical example of nepotism projecting status quo is best.

@Mage @Ashes @Skies @Centaur

@TopCat has already managed to destroy BIMAN and now he is bent on destroying BD economy with his uncouth propositions to build it. After all, he is from the Mongolian stock.

 

[Nilgiri]

Post number 16 here + topcat/iajdani has bragged here few times he works in "aviation services" industry (i.e Biman or something related). i.e status quo-ist bureaucract babu type.