Indonesia’s Balance of Payments (BOP) remained stable in the third quarter of 2025 as external sector resilience held firm (20/11).

Bank Indonesia reported a 6.4 billion US dollar BOP deficit, while reserve assets stayed high at 148.7 billion US dollars, covering 6.0 months of imports and government external debt payments, well above the international adequacy benchmark of around three months.

Current Account Returns to Surplus on Non-Oil and Gas Export Gains

The current account posted a 4.0 billion US dollar surplus, equal to 1.1% of GDP, reversing a 2.7 billion US dollar deficit recorded in the previous quarter.

Officials attributed the improvement to a wider non-oil and gas trade surplus driven by stronger export performance.

The services trade deficit also narrowed as inbound international visitor numbers increased.

Meanwhile, the primary income deficit eased due to lower income payments on foreign investment, reflecting seasonal dividend and interest patterns.

Bank Indonesia noted that the oil and gas trade deficit increased after a rise in oil imports.

Capital and Financial Account Deficit Remains Manageable Amid Global Uncertainty

Despite persistent global financial market volatility, the capital and financial account remained manageable, recording an 8.1 billion US dollar deficit in the third quarter.

Direct investment continued to show a surplus, signaling consistent investor confidence in Indonesia’s economic outlook and investment climate.

Portfolio investment, however, registered a deficit due to foreign capital outflows in debt securities.

Other investments also booked a deficit, mainly caused by higher private-sector loan repayments.

Bank Indonesia Maintains Policy Mix to Support External Resilience

Looking ahead, Bank Indonesia stated it will “continue monitoring global economic dynamics that could impact the BOP outlook,” while strengthening its policy mix.

The central bank emphasized continued coordination with the Government and relevant authorities to reinforce external sector stability.

According to Bank Indonesia, BOP performance throughout 2025 is expected to remain solid, supported by a sustained non-oil and gas trade surplus and steady foreign direct investment inflows.

PHOTO: FREEPIK

This article was created with AI assistance.