Slowing exports caused by the current account deficit
By : Herry Barus And Aldo Bella Putra | Thursday, September 06 2018 - 12:00 IWST
Menko Darmin Nasution (Setkab)
INDUSTRY.co.id - Jakarta - Coordinating Minister for Economic Affairs Darmin Nasution acknowledged that slow export growth was one of the causes of the current account balance still having a deficit.
"Investment is good enough, but our export growth is quite slow. So the pressure on us is relatively high," Darmin said in Jakarta on Wednesday (05/09/2018)
Darmin said the current account deficit made the effect of strengthening the US dollar on Indonesia's currency higher than other countries.
"If we are not that bad, the pressure is the same as the impact on the countries around us. But the pressure on us is more severe than Thailand and Malaysia," he said.
In fact, Indonesia's imports also recorded an increase in line with the high imports of raw materials needed for oil and gas investment and imports.
This condition is exacerbated by export earnings which are still heavily parked abroad, thus contributing to the supply of US dollars domestically.
For this reason, the government is trying to reduce the current account deficit by improving business permits through an integrated service system (OSS) to encourage investment and import-based substitution investments.
Then, Darmin added, the government encouraged the use of biodiesel fuel (B20), to suppress oil and gas imports, which has been the main contributor to the trade balance deficit.
In addition, to strengthen foreign exchange, the government increases the passion of the tourism sector, so that the number of foreign tourist arrivals increases, through the provision of KUR for business people and services who want to invest in this business. (Ant)