Indonesia’s currency rises as China policy support offsets a USD 12.49 billion trade gap in Q2 2026, its largest on record.
The Indonesian Rupiah (IDR) extended gains against the USD for a third day, trading near 17,760 in Asian hours Friday. The advance defies a record current account deficit of USD 12.49 billion in Q2 2026, or 3.3% of GDP, up sharply from USD 2.89 billion a year earlier.
The deficit expansion was driven by a collapse in the trade surplus to USD 1.32 billion from USD 10.52 billion in Q2 2025. Rising oil prices, fueled by Middle East conflict, spurred import growth, narrowing the surplus. Despite these headwinds, the Rupiah found support from Indonesia’s economic ties with China.
Chinese Vice Finance Minister Liao Min’s pledge to introduce timely fiscal measures bolstered sentiment. Domestically, Bank Indonesia held its key rate at 5.75% for a second month, emphasizing policy continuity after 100 basis points of hikes since May.