Friday , June 2 2023

Minister for Policy Coordination: We have a deficit since the current account independence

[ad_1], Jakarta – Minister of Economic Affairs, Darmin Nasution, responded to an increase in current account deficits current account deficit (CAD) in the 3rd quarter of 2018, recorded at USD 8.8 billion or 3.37% of GDP. This deficit is due to the fact that Indonesian exports have failed to go further than the import rate.

"This import volume is still high, as export volumes are, because we can not expect it to see data. It seems that exports are expected to inevitably increase the deficit," said Darmin, written on Saturday (11/10/2018).

The current account deficit is not something new. As it has been since Indonesia's independence. In the new order period this deficit was mainly due to the fact that many items were needed but could not be manufactured on the domestic market.

"Do not forget that since independence we have always had our deficit (rather than deficit). There may have been a shortage of quarters for some quarters, but virtually since our new order since 1997 our current account was basically a deficit, because too many products were not manufactured but we need, "he explained.

Some of the items imported during this period were raw materials, semi-finished products and capital goods. "It really takes time if you want to correct the current account," said the Minister for Foreign Affairs, Co-ordination Minister.

The former Tax Director General added that over the past 7 years, by the end of 2017, the government could control the budget deficit on the basis of capital and financial surpluses.

"If it can close, this is not a problem, even if it has more foreign exchange reserves. Now, he really does increase the current account deficit and previous policies that he will have until September instead of October or November," he said.

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