BI Governor: NPI Performance Needs Strengthening to Mitigate Impact of War

Synergy in policies to strengthen the performance of the balance of payments needs to be continuously enhanced to maintain the external resilience of the economy.

Jakarta (ANTARA) - Bank Indonesia Governor Perry Warjiyo assessed that the performance of Indonesia’s Balance of Payments (NPI) needs to be strengthened to mitigate the ongoing impact of the war in the Middle East.

It was recorded that the trade balance in January-February 2026 experienced a surplus of USD 2.2 billion, primarily sourced from the non-oil and gas trade surplus as well as a reduced oil and gas trade deficit.

“From capital and financial transactions, foreign portfolio investment in January-March 2026 recorded net outflows of USD 1.7 billion, mainly influenced by global financial market uncertainties triggered by the war in the Middle East,” he said during the Announcement of the Board of Governors Meeting (RDG) Results for April 2026, held virtually in Jakarta on Wednesday.

In early Q2-2026 (up to 20 April 2026), he continued, capital flows returned to record net inflows of USD 1.9 billion, mainly supported by foreign capital inflows into Bank Indonesia Rupiah Securities (SRBI) and Government Securities (SBN), driven by increased yields on both instruments.

At the end of March 2026, Indonesia’s foreign exchange reserves position was recorded at USD 148.2 billion, equivalent to financing 6.0 months of imports or 5.8 months of imports and government foreign debt payments, and above the international adequacy standard of around 3 months of imports.

“Going forward, policy synergy to strengthen balance of payments performance needs to be continuously enhanced to maintain the external resilience of the economy amid high global uncertainties due to the Middle East war,” he stated.

Bank Indonesia projects the 2026 current account deficit to be in the range of a 1.3 percent to 0.5 percent deficit of Gross Domestic Product (GDP).