REPUBLIKA.CO.ID, JAKARTA - Indonesia has four types of deficit, namely current account deficit, budget deficit, balance of payment deficit, as well as trade deficit, due to mismanagement in dealing with fuel subsidies.

"The four deficits will be a legacy for the next president," Chairman of Institute for Studies, Research and Economic Development in Chamber of Commerce and Industry Indonesia, Didik J Rachbini said on Saturday.

Didik said we didn't not need to worry about current account deficit since it could balance the capital inflows  especialy foreign direct investment (FDI). 

Trade deficit also hits Indonesia. For example, in 2007, Indonesian trade with Japan showed a surplus of 3.2 billion USD, but now the deficit on Indonesian side has reached 11 billion USD. While Indonesian trade with China show trade deficit growing from 1.8 billion USD to 17 billion USD.

Data of Statistics Indonesia (BPS) processed by Ministry of Industry shows that majority of trade deficits caused by Indonesian partnership in Free Trade Areas (FTA). Indonesia joined China-ASEAN Free Trade Agreement (CAFTA) which was initially signed in 2002 and came into effect on January 1, 2010. The result was a collapse of foreign trade barriers with greatest deficit in Indonesia's history.

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