Indonesia’s balance of payments (BoP) ended in positive territory in the second quarter, thanks to improving exports and hefty foreign funds inflows.

The BoP ended with a surplus of US$2.16 billion as of June, reversing a deficit of $287 million in the first quarter, according to data published by Bank Indonesia (BI) on Friday.

“We’re now in the right direction,” Mandiri Sekuritas chief economist Leo Putra Rinaldy said over the weekend, commenting on the results, especially of the current-account deficit.

The BoP consists of three key components: current accounts, capital accounts and financial accounts. The surplus eventually helped narrow the current-account deficit (CAD) to 2 percent in the second quarter from 2.2 percent in the first quarter.

The CAD itself measures the shortfall between earnings from overseas and payments to foreigners. The narrower the CAD is, the more stable an economy is.

Data show that exports of goods rose to $36.24 billion in the April to June period from $33.1 billion in the first three months of the year. Textiles, vehicles, auto parts and machinery were among the sectors that posted higher exports.

The higher figure then improved the overall goods trade balance.

Meanwhile, the financial account reported a significant increase of more than 1.5 times from the first quarter to the second, thanks to hefty capital inflows in the financial market. According to the data, portfolio investments surged by almost double on a quarterly basis to $8.38 billion.

The issuance of the government’s foreign-denominated debt papers and BI’s own certificate (SBI) had attracted the funds, while at the same time foreign investors opted to invest in the domestic stock market.

Leo said he expected the current-account deficit to slightly widen in the second half as economic activities picked up, which will trigger higher imports of raw materials and capital goods.

He sets his full-year CAD estimate at 2.4 percent, above the 2015 level of 2 percent. “The most important thing is that it is manageable and we can actually finance the widening deficit. The financial account will still see a surplus in the second half,” he said.

BI predicted that the deficit will widen to between 2.2 percent and 2.5 percent this year, below the record high of 4.5 percent in the second quarter of 2013.

Leo said Indonesia was still an attractive investment destination as it offered relatively higher yields than other countries, low fiscal risks and a stable political situation.

Kenta Institute economists Eric Sugandi said the government’s deregulation measures — taken through the issuance of 12 economic policy packages since last September — were already supporting investment growth, although the process would take some more time.

The government’s countercyclical attempts, such as pushing spending to give some boost to the sluggish economy, also worked in the second quarter, he added.

The economy expanded by 5.18 percent in the second quarter versus 4.91 percent in the first quarter, supported by higher government spending and strong private consumption.

“Now, the government should lower its fiscal risks even more and keep the inflation rate, especially on volatile food prices, in check to maintain the positive trend,” Eric said.

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