In the fourth quarter of 2015 Indonesia's economy expanded 5.04 percent (y/y), the fastest growth pace since Q1-2014.

Rising imports in the fourth quarter of 2015 mainly comprised capital goods, consumer goods, and raw materials. Meanwhile, non-oil & gas exports contracted by 4.2 percent (q/q) due to sluggish global demand and persistently weakening commodity prices. Regarding the oil & gas trade balance, the declining volume and price of oil managed to shrink the existing deficit.

Indonesia's current account deficit of 2.39 percent of GDP in Q4-2015 constitutes an improvement from a deficit of 2.70 percent of GDP in the fourth quarter of 2014. Regarding full-year 2015, Indonesia's current account deficit stood at USD $17.8 billion, equivalent to 2.06 percent of GDP, down from USD $27,5 billion (3.09 percent of GDP) in 2014.

Further Reading: Analysis and Overview of Indonesia's Current Account Balance

Meanwhile, the country's balance of payments in Q4-2015 recorded a surplus of USD $5.1 billion, improving markedly from a deficit of USD $4.6 billion in the preceding quarter. Bank Indonesia stated that this improvement came on the back of a surplus in capital and financial transactions of USD $9.5 billion.

Indonesia's Current Account to GDP:

Bahas