Bank Indonesia (BI) reported that Indonesia’s balance of payments (BOP) recorded a significant deficit in the first quarter of 2026, marking a sharp reversal from the previous quarter’s surplus.
On Friday (22/5/2026), BI announced that the BOP deficit reached US$9.15 billion in Q1 2026, compared with a surplus of US$6.07 billion in the previous quarter. The figure also exceeded the full-year deficit recorded in 2025, which stood at US$7.84 billion, and marked the deepest quarterly deficit since Q1 2020.
The balance of payments consists of two main components: the current account and the capital and financial account.
In Q1 2026, the current account posted a deficit of US$4 billion, equivalent to 1.1% of gross domestic product (GDP), also marking its weakest performance since the pandemic period.
Bank Indonesia said the non-oil and gas trade balance still recorded a surplus, although lower than the previous quarter, reflecting slower global economic growth and disruptions in international supply chains. The oil and gas trade deficit also narrowed, supported by stable domestic economic activity.
The primary income deficit widened due to higher interest and coupon payments. Meanwhile, the services balance improved, driven by lower freight import costs.
The capital and financial account also recorded a deficit of US$4.9 billion, compared with a surplus of US$9 billion in the previous quarter.
BI noted that direct investment continued to post a surplus, reflecting positive investor sentiment toward Indonesia’s economic outlook and stable domestic investment conditions. Portfolio investment also remained in surplus, although lower than in Q4 2025 amid rising global uncertainty.
Other investment, however, recorded a deficit, driven by repayments of maturing external debt, alongside increased placements of cash, deposits, and other foreign assets.
Looking ahead, Bank Indonesia said it will continue monitoring global economic developments that could affect Indonesia’s external position and strengthen its policy mix in coordination with the government and relevant authorities.
BI also projects the 2026 current account deficit to remain within a range of 0.5% to 1.3% of GDP.
