Bank of Indonesia reported that Indonesia recorded a USD9.1 billion balance of payments deficit in the first quarter of 2026, while reserve assets remained high at USD148.2 billion at the end of March, equivalent to 5.8 months of imports and government external debt servicing. The current account deficit widened to USD4.0 billion, or 1.1% of GDP, from USD2.5 billion, or 0.7% of GDP, in the fourth quarter of 2025. The capital and financial account also moved to a USD4.9 billion deficit from a USD9.0 billion surplus in the previous quarter. The current account was supported by a continued surplus in non-oil and gas trade and a narrower oil and gas trade deficit, while the primary income deficit widened on higher coupon and interest payments and the services balance improved as freight service imports declined. In the financial account, direct investment remained in surplus and portfolio investment also stayed positive, though both were affected by heightened global market uncertainty. Other investment recorded a deficit due to repayments of maturing foreign loans and the placement of cash, deposits and other assets abroad. Looking ahead, Bank Indonesia said 2026 balance of payments performance is expected to remain sound, with the current account deficit projected at 0.5% to 1.3% of GDP. The central bank said it will continue monitoring global developments and adjust its policy mix in coordination with the government and other authorities.
Bank of Indonesia2026-05-22
Bank of Indonesia reports USD9.1 billion first quarter balance of payments deficit with reserves at USD148.2 billion
Bank Indonesia reported a USD9.1 billion balance of payments deficit in Q1 2026, with reserves at USD148.2 billion, covering 5.8 months of imports and government external debt service. The current account deficit widened to USD4.0 billion (1.1% of GDP), while the capital and financial account posted a USD4.9 billion deficit, driven by higher primary income outflows and other investment deficits despite continued direct and portfolio investment surpluses. The central bank expects the balance of payments to remain sound in 2026, with the current account deficit at 0.5%–1.3% of GDP, and will adjust its policy mix with the government and other authorities.