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Jakarta – Indonesia's current account deficit (current account deficit / Canadian dollar) is not due to the performance of exports and imports, nor to that of negative goods and services.
INDEF senior researcher Faisal Basri said the main cause of the current account balance remained a deficit, as many foreign companies in Indonesia have brought it. Income in their respective countries.
"The main source of the current account deficit is the return of profits from foreign companies operating in Indonesia," Faisal told the Adu National Strategic Seminar to deal with the trade war at the Bidakara Hotel, south of Jakarta , on Wednesday (28.11.2018).
Based on his track record, profits of foreign companies in Indonesia reported in his hometown amounted to US $ 20 billion in 2017.
According to Faisal, in 2018, the profits of Indonesian foreign companies brought back to their countries were close to 11 billion US dollars.
"The government does not talk about it, so it's not an export-import," he said.
According to Faisal, many foreign companies have made profits because there are not many areas of investment to accommodate these funds.
"We are providing land so that the profits can be reinvested in Indonesia, he will want it if he does it. return"It's the same thing that he brought home to his village," he explained.
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(hek / ang)
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