Indonesia's Current Account Deficit Reached Rp 129 Trillion in the Third Quarter of 2018

Indonesia's current account deficit widened further this year due to increased imports. The Indonesian Balance of Payments report shows that the current account deficit in the third quarter of 2018 reached US$8.8 billion (approximately Rp 129 trillion at an exchange rate of Rp 14,600/US$), equivalent to 3.37% of national Gross Domestic Product (GDP).

The current account deficit in the third quarter increased by 10.89% compared to the previous quarter and surged more than 92% year-on-year. Cumulatively (Q1-Q3) 2018, the current account deficit nearly doubled to US$22.42 billion, equivalent to 2.86% of GDP, but still within the safe limit of 3% of GDP. The government has implemented policies to curb the current account deficit, including raising import taxes.

(Read Databoks: [Inilah yang Membuat Neraca Transaksi Berjalan Indonesia Defisit](https://databoks.katadata.co.id/datapublish/2018/10/26/inilah-yang-membuat-neraca-transaksi-berjalan-indonesia-defisit))

Indonesia's current account deficit in Q3 2018 was the largest since Q3 2014 and the 27th consecutive quarter of deficit since Q4 2011. The widening current account deficit was driven by a decline in trade balance performance and a growing deficit in the services balance.