REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) projected that trade balance would record a surplus in 2014. Executive Director of Communication Department in BI, Tirta Segara said that this positive projection came from the export improvements driven by rising demand of trading partners.

"Government's control on import is also in line with domestic demands," Segara said recently as reported by Elba Damhuri.

BI believes that current account deficit can decline below 3.0 percent of gross domestic product (GDP). Indonesia's trade balance in January 2014 experienced a deficit of 0.43 billion USD more influenced by seasonal patterns that decreasing non-oil commodity exports and temporary impact of mining law.

Manufacturing exports, especially machinery products, mechanical, chemical and metal products in January 2014 grew quite high. BI noted that capital inflow was expected to continue to improve, followed by domestic economic outlook. In February 2014, foreign capital inflow in Indonesia's financial market has reached 34.6 trillion IDR.

Indonesia's foreign exchange reserves in February 2014 increased to 102.7 billion USD or equivalent to 5.9 months of imports or 5.7 months of government foreign debt payments. This value is above international standards of three months of imports.

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