Bank Indonesia reported that the country’s balance of payments deficit narrowed to USD 0.9 billion in the second quarter of 2026 from USD 9.1 billion in the first quarter. Reserve assets stood at USD 145.6 billion at the end of June, equivalent to 5.6 months of imports or 5.4 months of imports and government external debt servicing. The current account deficit widened to USD 12.5 billion, or 3.3% of gross domestic product, from USD 3.6 billion, or 1.0%, reflecting a larger oil and gas trade deficit, a narrower non-oil and gas trade surplus and higher primary income payments. This was largely offset by a USD 12.0 billion capital and financial account surplus, compared with a USD 4.8 billion deficit in the previous quarter, as direct and portfolio investment inflows increased and the other investment deficit narrowed. Bank Indonesia expects the current account deficit to narrow as export prospects improve amid higher global commodity prices and lower reciprocal U.S. tariffs. It also expects the capital and financial account to remain in surplus, supported by foreign inflows, attractive returns on domestic financial instruments and the outlook for the Indonesian economy.

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