24 Aug 2026 | News & Feature

Balance of Payment: A Pyrrhic surplus

  • Indonesia's Q2-2026 BoP deficit narrowed to USD 0.5 Bn, masking two extremes: the CA posted its worst-ever deficit of USD 12.5 Bn (-3.3% of GDP), while the FA recorded an unusually high surplus of USD 12.0 Bn.
  • The CA deficit was largely driven by rising imports, with non-oil imports tied to stronger loan growth. The FA surplus was sustained by the public sector through SRBI, global bonds, and other liabilities, offsetting heavy private sector capital outflows.
  • With global long-term yields rising sharply, additional borrowings become increasingly costly. Bank Indonesia is therefore expected to keep rates elevated to attract capital inflows.