Indonesia’s current account deficit hit a record USD 12.5 billion in Q2 2026, weighing on the Rupiah amid external strains and geopolitical risks.
The Indonesian Rupiah (IDR) halted a three-day decline, trading near 17,770 against the USD as a record USD 12.5 billion current account deficit in Q2 2026 fueled concerns. Elevated oil prices, strong import demand, and weaker exports are expected to keep external balances under pressure in the near term.
The deficit widened from previous quarters, reflecting persistent trade imbalances and softer commodity performance. Markets remain cautious ahead of July trade data and August inflation figures, while El Niño risks add to worries over potential food-price spikes.
Despite headwinds, the Rupiah’s downside may be limited by expectations of continued support from Bank Indonesia. The central bank held rates steady in August after a 100-basis-point hike since May, reinforcing its focus on currency stability.