FX.co ★ Indonesia Current Account Gap Narrows in Q1

In the first quarter of 2025, Indonesia's current account deficit fell to USD 0.17 billion, a significant decrease from USD 2.44 billion in the same period of 2024. This marks the eighth consecutive quarter of deficit, albeit at the lowest level in this series, constituting a mere 0.1% of the nation's GDP. A closer look at the figures shows a slight rise in the primary income deficit, which increased to USD 9.37 billion from the previous year's USD 8.84 billion. Similarly, the services account deficit expanded to USD 5.44 billion, up from USD 4.19 billion. On a more positive note, the trade surplus experienced a significant boost, reaching USD 13.06 billion compared to USD 9.29 billion the prior year. Additionally, the secondary income surplus grew to USD 1.57 billion from USD 1.30 billion. In the previous year, the current account deficit had sharply widened to USD 8.47 billion, representing 0.6% of GDP, up from USD 2.04 billion (0.1% of GDP) in 2023. This increase was largely due to a decline in the trade surplus amidst lackluster foreign demand, despite strong domestic consumption. Nonetheless, the deficit remained within the central bank's target range of 0.1% to 0.9%.