BI Records Indonesia's Payment Balance Deficit In The Second Quarter Of 2025

Illustration. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) noted that the performance of the Indonesia Payment Balance (NPI) in the second quarter of 2025 recorded a deficit of 6.7 billion US dollars and the position of foreign exchange reserves at the end of June 2025 was recorded to remain high at 152.6 billion US dollars.

Executive Director of the Communications Department, Junanto Herdiawan, said that the current account deficit was recorded to be low amidst the slowdown in the global economy and commodity prices.

In addition, he said that capital and financial transactions recorded a controlled deficit amid the uncertainty of the global financial market that was still high.

"With these developments, NPI in the second quarter of 2025 recorded a deficit of 6.7 billion US dollars and the position of foreign exchange reserves at the end of June 2025 remained high at 152.6 billion US dollars," he explained in his statement, Thursday, August 21.

Junanto said this was equivalent to financing 6.1 months of imports and paying the government's foreign debt and the position of foreign exchange reserves was above the international adequacy standard of around 3 months of imports.

In addition, current transactions recorded a lower deficit where in the second quarter of 2025, the current account deficit was recorded at 3.0 billion US dollars or 0.8 percent of GDP, higher than the deficit of 0.2 billion US dollars equivalent to 0.1 percent of GDP in the first quarter of 2025.

Junanto said the non-oil and gas trade balance still posted a surplus, although lower than the previous quarter, in line with the slowdown in global economic growth and commodity prices. On the other hand, the oil and gas trade balance deficit decreased in line with lower global oil prices.

Meanwhile, he said the primary revenue balance deficit had increased compared to the previous quarter, along with the increase in dividend and interest/coupon payments according to the quarterly pattern.

"The secondary revenue balance surplus is increasing due to the increase in grants and the remittance of Indonesian Migrant Workers (PMI) abroad," he explained.

In addition, Junanto said that the performance of capital and financial transactions remains under control amid the uncertainty of the global financial market which is still high.

"Investment immediately posted an increase in surplus compared to the first quarter of 2025 as a reflection of the maintained positive perception of investors towards economic prospects and the domestic investment climate," he added.

On the other hand, Junanto said that portfolio investment noted that the deficit was mainly driven by foreign capital outflows in the form of domestic debt securities.

Meanwhile, he said other investments noted that the surplus was influenced by the withdrawal of foreign loans from the private sector, with these developments, capital and financial transactions in the second quarter of 2025 recorded a deficit of 5.2 billion US dollars.

In the future, Junanto said that Bank Indonesia will always pay close attention to the dynamics of the global economy that can affect the prospects for NPI and continue to strengthen the response of policy mixes supported by close policy synergies with the Government and related authorities, in order to strengthen the resilience of the external sector.

"The 2025 NPI is predicted to remain healthy, supported by a surplus of capital and financial transactions as well as a low current account deficit in the deficit range of 0.5 percent to 1.3 percent of GDP," he said.

Junanto conveyed that the surplus of capital and financial transactions supported by foreign capital inflows is in line with investor's positive perception of the domestic economic prospects that remain good and attractive investment returns.