Resolve Deficit by Strengthening Structure

KOMPAS/ALIF ICHWAN

Bank Indonesia (BI) Governor Perry Warjiyo (center) together with (from right to left) Deputy Governor of BI Rosmaya Hadi, Mirza Adityaswara, Erwin Rijanto and Sugeng prepare to hold a press conference in Jakarta on Thursday (17/01/2019). The results of the Bank Indonesia Board of Governors Meeting decided to hold the benchmark interest rate at the range of 6 percent, fixed deposit rate at 5.25 percent and loan interest rates at 6.75 percent.

JAKARTA, KOMPAS -- The government needs to continuously strengthen the national economic structure amid global turmoil. Capital inflows have not been enough to narrow the current account deficit, as numerous components have led to the deficit, including the trade balance, which reached a record deficit of US$8.57 billion last year.

Deputy of macroeconomics and financial coordination Iskandar Simorangkir of the Office of the Coordinating Economics Minister said in Jakarta on Friday (18/1/2019) that Indonesia remained dependent on foreign capital inflows, especially portfolio investments, as domestic savings were insufficient. This situation leads to a significantly negative savings investment gap.