- Indonesia recorded a USD 0.78 Bn BoP deficit in Q1-2025, a sharp drop compared to a USD 7.21 Bn surplus in Q4-2024. The drop is attributed to the lower FA (-0.10% of GDP), while the CA position improves to -0.05% of GDP amidst the weakening imports.
- Lower private sector cash placements and external loans drawn by the public sector explain the sharp drop in the FA, but the trend may revert in the upcoming quarter as the government is looking to raise funds from international creditors.
- Higher import prices due to the weakening Rupiah help Indonesia’s CA position to recover. Alas, the seasonal spike in external payments means that the CA recovery may be short-lived.
