Indonesia Posts Largest Current Account Gap Since 2019

Indonesia’s current account deficit widened sharply to USD 4.01 billion in Q1 2026 from a deficit of USD 0.15 billion in the same period a year earlier. It marked the largest current account deficit since the fourth quarter of 2019 and was equivalent to 1.1% of the country’s GDP, as the trade surplus narrowed sharply to USD 7.98 billion from USD 13.07 billion in Q1 of 2025, amid slowing global economic growth and supply chain disruptions caused by the Middle East conflict. Meanwhile, the primary income deficit edged down to USD 9.15 billion from USD 9.29 billion a year earlier, while the services deficit narrowed to USD 4.58 billion from USD 5.48 billion. The secondary income surplus rose slightly to USD 1.75 billion from USD 1.55 billion. In 2026, the central bank expects the current account deficit to be in the range of 0.5% to 1.3% of GDP. Last year, the current account gap fell sharply to USD 1.52 billion or 0.1% from GDP from USD 8.58 billion in 2024.

Indonesia’s current account deficit widened to USD 2.54 billion in Q4 2025 from USD 1.14 billion in the same period a year earlier. The latest result was equivalent to 0.7% of the country's GDP, swinging from a surplus in Q3, which had marked the first gain since Q1 2023. The primary income deficit increased to USD 9.59 billion from USD 8.96 billion in the prior year. Also, the goods surplus narrowed to USD 10.16 billion from USD 11.30 billion, mainly due to a wider oil trade shortfall. At the same time, the services deficit eased to USD 4.87 billion from USD 5.10 billion, while the secondary income surplus edged up to USD 1.76 billion from USD 1.62 billion. For the full year, the current account gap shrank sharply to USD 1.45 billion from USD 8.58 billion in 2024, equivalent to 0.1% of the GDP, signaling a marked improvement in Indonesia’s external position. In 2026, the central bank expects the current account deficit to be in the range of 0.1% to 0.9% of GDP.

Indonesia posted a current account surplus of USD 4.0 billion in Q3 2025 (1.1% of GDP), shifting from a USD 2.0 billion gap in the same quarter of 2024. This marked the country’s first current account surplus since Q1 2023 and its largest since Q3 2022, as the trade surplus surged to USD 16.1 billion, up from USD 9.2 billion, supported by an increase in the non-oil trade surplus. The secondary income surplus also increased to USD 1.7 billion, from USD 1.5 billion. Meanwhile, the primary income deficit widened slightly to USD 9.4 billion, compared with USD 8.5 billion a year earlier, while the services account deficit rose slightly to USD 4.3 billion from USD 4.2 billion. Last year, the current account deficit widened significantly to USD 8.7 billion, up from USD 2.0 billion in 2023, driven by a decline in the trade surplus amid subdued foreign demand. For this year, the central bank expects the current account to be within a range of a 0.1% surplus to a 0.7% deficit of GDP.