Indonesia’s Current Account Deficit Widens

JAKARTA (Reuters) – Indonesia’s current account deficit widened to 0.9% of gross domestic product (GDP), or $3 billion, in the second quarter, up from a revised deficit of 0.7% of GDP in the previous quarter, according to a statement from the central bank on Thursday.

The deficit as a percentage of GDP is at its widest since the second quarter of 2020, as per data from LSEG Workspace.

Bank Indonesia (BI) noted the deficit in service trade increased due to travel for the hajj pilgrimage during this quarter, impacting the current account balance.

BI also indicated it expects the current account deficit to remain low, projecting a deficit of 0.1% to 0.9% of GDP for this year.

The balance of payments for the second quarter experienced a deficit of approximately $600 million, compared to a $6 billion deficit in the first quarter.