Indonesia posts first current account surplus in 10 months

[JAKARTA] Indonesia’s current account swung into a surplus for the first time in 10 quarters in the July-September period, amounting to US$4 billion or 1.1 per cent of its gross domestic product, the central bank said on Thursday.

South-east Asia’s largest economy last saw a quarterly surplus in the first three months of 2023. It registered a deficit of 0.8 per cent of GDP in the second quarter, 2025.

Bank Indonesia said a bigger surplus in trade in goods, including a higher export value of oil and gas driven by rising crude prices, was one of the reasons for the surplus.

The size of the surplus relative to GDP was the biggest since the October-December quarter of 2022.

Indonesia’s current account position is closely monitored by investors and policymakers because it is often seen as a source of economic vulnerability because the country has to cover it with portfolio capital inflows.

Despite the surplus, the country’s balance of payments saw a deficit of US$6.4 billion in the third quarter, slightly smaller than the US$6.7 billion deficit in the previous three months, BI said.

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“There was a surplus in direct investment, reflecting investors’ positive perception towards domestic economic prospects and the investment climate,” the bank said in a statement.

“Portfolio investment recorded a deficit due to foreign capital outflows from the bond market,” it added, noting there was also an increase in foreign debt payments by the private sector.

BI on Wednesday revised its full-year current account outlook, setting the range between a surplus of 0.1 per cent to a deficit of 0.7 per cent of GDP. It previously predicted a deficit of between 0.5 per cent to 1.3 per cent of GDP. REUTERS