Trade and Current Account Deficit, Rupiah at Rp 14,000 per US Dollar

Indonesia's trade balance recorded a deficit of US$1.31 billion during the January-April 2018 period. Similarly, the current account balance in the first quarter of 2018 showed a deficit of US$5.5 billion. This contributed to the weakening of the rupiah, pushing it close to Rp 14,200 per US dollar. Meanwhile, foreign exchange reserves reached US$124.86 billion by the end of April 2018.

According to Bloomberg data, the rupiah exchange rate closed at Rp 14,190 per US dollar on May 21, 2018, weakening by 4.68% from its year-end 2017 position of Rp 13,555/US dollar (YTD). This weakening was not as severe as during the crisis, when it depreciated by more than 200% to Rp 16,650/US dollar from its year-end 2017 level of Rp 5,403/US dollar.

During the 1998 crisis, the rupiah weakened to Rp 16,650/US dollar. However, the trade balance in the second quarter still recorded a surplus of US$1.2 billion, and the current account balance also showed a surplus of US$670 million. However, Bank Indonesia's foreign exchange reserves at that time were only US$18.99 billion. During the rupiah's weakening in 2008 and 2015, the current account experienced a deficit, but the trade balance still recorded a surplus.