Indonesia forex reserves set to reach 47 bln USD in 2007

The Indonesian central bank said Friday the foreign exchange reserves are projected to surge to 47 billion U.S. dollars in 2007 from approximately 41 billion dollars in the year.

Bank Indonesia's Deputy Governor Hartadi Sarwono told reporters that Indonesia is expecting bigger export and foreign direct investment next year to drive up the international reserves.

But the central bank also predicted a declining surplus in the balance of current account due to increasing imports of capital goods and raw material.

"Surplus in the current account has reached around 8 billion dollars at the meantime. Although the surplus is very likely to decline in 2007, it is not a bad thing," he said.

Capital goods and raw material imports are predicted to soar in the back of growing investments and other economic activities, he said.

Source: Xinhua