Indonesia's Q2 current account deficit at 4.27 pct of GDP - c.bank

JAKARTA Thu Aug 14, 2014 2:11am EDT

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JAKARTA Aug 13 (Reuters) - Indonesia's current account deficit in the second quarter was larger than expected at 4.27 percent of gross domestic product or $9.1 billion, central bank governor Agus Martowardojo said on Thursday.

The median of a Reuters poll was for the April-June deficit of about 4.0 percent of GDP, which was about what Bank Indonesia (BI) earlier indicated it would be.

The central bank said the second quarter gap was widened by high imports of consumer goods due to demand ahead of holidays at the end of the Muslim fasting month.

BI said the deficit would be smaller in July-September due to higher mineral exports and a slowing of imports.

In the first quarter, the deficit was 2.06 percent. The second-quarter deficit is traditionally higher than in other periods due to outflows for company dividends and coupon payments on government and private debt.

Southeast Asia's largest economy has been struggling to keep down its current account deficit, which ballooned to 4.4 percent in the second quarter of 2013. That put pressure on the rupiah and helped spur the central bank to raise interest rates.

BI has said its expects the deficit to be smaller in the third and fourth quarter, and to be around 3 percent of GDP for full-year 2014, compared with last year's 3.3 percent.

Details on April-June balance of payments data will be released by Friday. (Reporting by Adriana Nina Kusuma and Nilufar Rizki; Writing by Gayatri Suroyo; Editing by Richard Borsuk)

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