- Indonesia’s balance of payments (BoP) registered a large surplus of USD 4.1 Bn on Q1-2021.
- The ongoing commodity boom continues to bolster Indonesia’s large trade surpluses, keeping the current account deficit narrow even as the services trade balance continues to deteriorate.
- With equity and government bond inflows overall muted last quarter, the large capital account surplus recorded last quarter is somewhat difficult to account for, although big tech-related financing may be a possible culprit.
- In any case, big tech-related capital inflows may be an increasingly important dynamic in the coming months, and could prove to be a useful buffer should the current account begin to deteriorate.
