Primary Income Deficit Increased by 20.67% to US$8.14 Billion in Q2 2021

During the Covid-19 pandemic, foreign investors still managed to profit in the Indonesian financial market. This is reflected in the high amount of investment funds transferred out of Indonesia, both from direct investment and portfolio investment. Meanwhile, profits from foreign investment into Indonesia remained minimal.

Bank Indonesia (BI)'s Indonesia Balance of Payments report shows that primary income receipts were only US$1.74 billion, while payments reached US$9.88 billion in Q2 2021.

As a result, the primary income deficit widened by 20.67% to US$8.14 billion, or Rp 118.01 trillion, in Q2 2021 compared to Q1 2021 (quarter-to-quarter/q-to-q). This deficit was the deepest in the last six quarters.

Compared to Q2 2020, the primary income deficit also surged by 32.2% (year-on-year/yoy). Cumulatively in the first semester of 2021, the primary income deficit increased by 5.81% to US$14.89 billion (cumulative-to-cumulative/c-to-c).

The primary income deficit in the second quarter of this year was contributed by investment income of US$7.87 billion and compensation of employees of US$270.65 million.