Indonesia’s current account deficit hit USD 12.5 billion in Q2 2026, pressuring the Rupiah amid high oil prices and weak exports.
The USD/IDR pair traded around 17,760 in Asian hours Tuesday, extending gains as Indonesia’s Rupiah faced sustained pressure. A record current account deficit of USD 12.5 billion in Q2 2026, driven by elevated oil prices and soft exports, heightened concerns over external stability.
The deficit widened from prior quarters, reflecting robust import demand and sluggish export performance. Bank Indonesia’s incoming governor emphasized foreign exchange management as a priority, citing strong domestic fundamentals as a buffer against global volatility.
The US Dollar’s strength ahead of key PCE inflation data further supported the pair, with markets awaiting Fed Chair Kevin Warsh’s remarks at Jackson Hole.