REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) predicted the country's current account deficit by the end of this year would be slightly lower to level 3.5 percent of the country Gross Domestic Product (GDP) compared with 3.8 percent in the third quarter. Wide current account deficit has put pressure on the domestic stock market lately. 

"By the end of the year the current account deficit could be at 3.5 percent. Currently the current account shows an encouraging trend," BI Governor Agus Martowardojo said on Friday. 

The country's current account deficit in the third quarter of this year fell to 8.4 billion USD from 9.9 billion USD in the second quarter (4.4 percent of the GDP). The decline in deficit was attributable to a surplus in trade of non oil/gas commodities and a sharper fall in imports than in exports of commodities other than oil and gas. 

Lower deficit in service and income account also contributed to the decline in current account deficit. In 2014, further decline is expected in current account deficit with the progress in structural improvement by the government. 

"We forecast the deficit in 2014 is at around 3 percent of the GDP," Agus said.

He said domestic economic stabilization policy adopted by Bank Indonesia and the government proved to be effective in gradually improving the countrys current account. 

"With the cooperation and structural reform , the current account deficit could be pressed down to less than 3 percent," he said. 

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