Indonesia posted a current account deficit of USD 1.93 billion (0.5% of GDP) in the second quarter of 2023, reversing from a surplus of USD 3.85 billion (0.9% of GDP) in the same period of the previous year. It was the first deficit in the current account since the second quarter of 2021, as the trade surplus narrowed sharply to USD 10.35 billion in Q2 of 2023 from USD 16.80 billion in the same period of 2022, amid moderating commodity prices, global economic slowdown, and a rise in domestic demand. The primary income deficit fell to USD 9.15 billion in Q2 of 2023 from USD 9.45 billion, and that of the services account declined to USD 4.65 billion from USD 5.02 billion in Q2 of 2022. Meanwhile, the secondary income surplus stood at USD 1.51 billion, little changed from a prior USD 1.52 billion gain. For the first half of 2023, the current account surplus narrowed to USD 1.05 billion from USD 4.40 billion in H1 of 2022.
