Import of Raw Materials Threatens Balance of Payments

Industry dependence on imported raw materials will become a critical issue for the balance of payments Indonesia in the long run. "Because, now many export products with high import content. So if exports rise, then imports will also increase," said Deputy Governor of Bank Indonesia, Hadad Hadad in Jakarta, Monday, October 17, 2011.

If the demand for consumer goods rise, may also increase imports. "Become not profitable," he said. This problem is partly due to lack of industry in the upstream sector. Developing countries, according to Hadad, often experienced this. China for example, about 60 percent of its exports depend on imports from abroad.

Bank Indonesia asked the ministry to strengthen the upstream sector of industry. "But, this problem can not be completed within 1-2 years, because we build the industry," he said.

Although there are problems that need to be aware, this year's balance of payments surplus until 2012. Muliaman not mention how the magnitude estimate of the surplus tersbeut.

Based on BI data, balance of payments surplus in the second quarter of 2011 amounted to U.S. $ 11.9 billion. That value has increased quite sharply compared to the previous quarter, at U.S. $ 7.7 billion.

The increase in surplus is driven surge in capital and financial account surplus that exceeded the current account surplus decreased. The current account itself is still sustained increase in exports of non-oil and gas with a surplus of U.S. $ 200 million.