Akmalal Hamdhi, Jakarta – Indonesia's current account deficit widened sharply to $12.5 billion in the second quarter of 2026 from $3.6 billion in the previous quarter, according to data released by Bank Indonesia on Friday.

The latest deficit was equivalent to 3.3% of the country's gross domestic product (GDP).

Bank Indonesia spokesman Ramdan Denny Prakoso said the widening current account deficit was driven by several temporary factors, including higher oil imports amid elevated global crude prices.

"The oil and gas trade deficit increased due to higher oil imports in line with elevated global oil prices," Ramdan said in a statement.

The non-oil and gas trade surplus also narrowed as imports increased to meet persistently strong domestic economic activity, he added.

The current account deficit was further affected by a widening primary income deficit amid increased primary income payments. Meanwhile, the secondary income surplus remained relatively stable compared with the previous quarter.

Indonesia's overall balance of payments also remained in deficit, although the shortfall narrowed significantly to $900 million from $9.1 billion in the first quarter of 2026.

The improvement was supported by a sharp turnaround in the capital and financial account, which recorded a $12 billion surplus after posting a $4.8 billion deficit in the previous quarter.

Source: https://jakartaglobe.id/business/indonesias-current-account-deficit-widens-sharply-to-125-billio