25 National savings and investment Gross national savings and investment are now close to being equal
26 Capital account components Portfolio flows have been volatile; reserves accumulation has been important.
27 Reserves assets and the exchange rate Policy of rapid reserve accumulation fro 2008 while the rupiah strengthened helped to hold down the current account deficit.
28 ConclusionThere has been a big deterioration in the current account since the end ofThis has contributed, at least in part, to a large depreciation in the Rupiah.Decline in goods balance (non-oil and gas, and oil).Commodity prices account for a large part of this – including crude oil, palm oil, coal, and many metals – end of the “super-cycle”.A terms of trade shock – like other commodity exporters.Imports of processed industrial supplies are a large component but flat (USD and volume) growth.Savings excess over investment has disappeared.Reserve asset transactions important in explaining capital account.FDI flows have increased. Portfolio flows have been volatile.
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