FX.co ★ Indonesia’s Balance of Payments Deficit Narrows Sharply in Q2 2026

Indonesia’s balance of payments position improved significantly in the second quarter of 2026, with the overall deficit narrowing to EUR -0.9 billion from EUR -9.1 billion in the first quarter of the year. The latest figures, updated on 21 August 2026, mark a substantial easing in external pressures compared with the start of 2026.

The sharp reduction in the deficit suggests a notable shift in Indonesia’s external accounts between the first and second quarters, potentially reflecting changes in trade flows, capital movements, or both. While the balance remains in negative territory, the move from a sizeable shortfall to a comparatively modest gap indicates that financing needs from abroad may have become less acute over the period.

Investors and policymakers will be watching subsequent releases to see whether this improvement can be sustained, and whether the second-quarter data signal the beginning of a more durable stabilization in Indonesia’s external position through the remainder of 2026.