By I Made Sentana
JAKARTA--Indonesia's current-account account deficit narrowed to $4.5 billion in the third quarter from $5.0 billion in the second quarter thanks to a higher trade surplus, Bank Indonesia said Friday.
The nation's central bank said the deficit in the July-September period was equal to 1.8% of gross domestic product, narrowing from 2.2% in the previous quarter, indicating that the deficit is getting more manageable.
A deficit equal to 2.5%-3% of GDP is considered safe.
Southeast Asia's largest economy has been running current-current deficits since late 2011 as the prices of its exported commodities, such as coal, crude palm oil, nickel and bauxite, plunged.
Indonesia will likely continue to bookcurrent-account deficits due to its imports of capital goods.
The improved current-account deficit helped jack up the overall balance of payment surplus in the third quarter to $5.7 billion from $2.2 billion in the second quarter.
The surplus was also helped by asset repatriation prompted by Indonesia's tax amnesty program.
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(END) Dow Jones Newswires
November 10, 2016 23:22 ET (04:22 GMT)
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