Indonesia's Balance of Payments Records a US$312 Million Deficit in Q2 2021

Bank Indonesia (BI) reported that Indonesia's Balance of Payments (BOP) in Q2 2021 recorded a deficit of US$ 312.98 million, equivalent to Rp 4.35 trillion (at an exchange rate of Rp 14,469/US dollar), compared to a surplus of US$ 4.49 billion in Q1 2021 (quarter-to-quarter/q-to-q). BI stated that this condition was supported by a persistently low current account deficit and a continued surplus in the capital and financial account.

In Q2 2020, the BOP recorded a surplus of US$ 8.16 billion, while in Q2 2021 it recorded a deficit. Cumulatively, in the first half of 2021, the BOP recorded a surplus of US$ 4.18 billion, a 150.5% increase compared to the first half of 2020 (cumulative-to-cumulative/c-to-c).

The overall Indonesian balance of payments deficit in the second three months of this year was triggered by an 111.05% increase in the current account deficit to US$ 2.23 billion (q-to-q) and a 65.51% decrease in the financial account surplus to US$ 1.91 billion (q-to-q). Meanwhile, the capital account balance in the second quarter of this year only increased by US$ 2.8 million (127%) to US$ 5 million (q-to-q).

In the current account, the primary income balance recorded the largest deficit, namely US$ 8.14 billion. This was due to increased investment income payments to foreign countries.

Furthermore, the services balance recorded a deficit of US$ 3.65 billion in Q1 2021, triggered by an increase in the transport services deficit. Meanwhile, the goods balance recorded a surplus of US$ 8.09 billion, and the primary income balance also recorded a surplus of US$ 1.46 billion.