REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) remains optimistic that the country's current account deficit (CAD) in 2014 can be kept below 3 percent of the gross domestic product (GDP), despite the trade deficit in April.
"The current account deficit was 3.3 percent in 2013. In the first quarter of 2014, it was 2.08 percent. For all of 2014, we hope it will be below 3 percent," BI Governor Agus Martowardojo said after a meeting with the budget council of the House of Representatives (DPR) here on Tuesday.
He added that the current account deficit will not exceed 3 percent. "It will be below 3 percent. We have no range for the deficit," he said.
The current account deficit fell to US$4.2 billion (2.12 percent of the GDP) in the first quarter of 2014, from US$4.3 billion (2.06 percent of the GDP) in the third quarter of 2013.
The decline in the current account deficit was due to declining imports, easing of import deficits, and declining deficits of the balance of service and the balance of income.
The Indonesian trade balance in April 2014 suffered a deficit of US$1.96 billion after a surplus of US$0.67 billion in March 2014.