JAKARTA, May 22 (Xinhua) -- Indonesia recorded a current account deficit of 200 million U.S. dollars, or 0.1 percent of its gross domestic product (GDP), in the first quarter of 2025, lower than the previous quarter's deficit of 1.1 billion dollars, or 0.3 percent of GDP, Bank Indonesia said on Thursday.
"The decline in the current account deficit was mainly due to an increase in the non-oil and gas trade surplus, while both non-oil exports and imports declined in line with global economic conditions," said Ramdan Denny Prakoso, executive director of Bank Indonesia's communications department.
The country's balance of payments recorded an overall deficit of 800 million dollars. At the end of March 2025, foreign exchange reserves stood at 157.1 billion dollars, equivalent to 6.5 months of imports and the government's external debt payments. The central bank said the level was well above the international adequacy standard of around three months of imports.
The services and primary income accounts posted wider deficits. The services account was pressured by a decrease in international tourist arrivals, while the primary income account deficit rose due to higher returns paid to foreign portfolio investors.
Meanwhile, the capital and financial account registered a deficit of 300 million dollars. Direct and portfolio investments continued to record surpluses, reflecting sustained investor confidence in Indonesia's economic outlook.
However, other investments recorded a deficit, mainly due to reduced loan disbursements by the government and private sector, as well as increased investment by Indonesian entities in overseas financial instruments. ■
