Published on : Tuesday, May 8, 2018
To quote Mirza on Monday at a seminar in Yogyakarta, as informed by Antara news agency, “The difference between countries with a trade deficit and surplus is that the countries with a trade surplus are relatively more resilient; their currency may even appreciate.” As per the recent figures from the Central Statistics Agency (BPS), in 2006 Indonesia was recorded a surplus of 3 percent, but a current account deficit in 2017 of 1.7 percent.
Mirza explained that adjacent nations like Malaysia had witnessed a current account surplus over the year, such as 16.1 percent in 2006 to 3 percent in 2017. In the meantime, Thailand witnessed a growth in surplus from 1 percent in 2006 to 11.7 percent in 2017, he said.
Mirza also explained that Malaysia and Thailand not only experienced trade surplus, but also witnessed a prosperous tourism industry at the same time. He gave examples of the data from the UN World Tourism Organization, which highlighted that in 2016, the tourism of Thailand contributed US$49.9 billion to its foreign exchange reserves, as Malaysian tourism contributed $18.1 billion.
“Therefore, the [government] policy must also support exports and tourism. Our current foreign exchange reserve is more than enough, but we can’t use it all the time. Activities in the real sector must continue to increase,” he said.
Tags: Bank Indonesia