{
  "id": 5671107,
  "title": "Analysis: External debt rises, current account deficit widens",
  "url": "https://urgent.news/2026/09/05/analysis-external-debt-rises-current-account-deficit-widens",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-05T00:00:03.000Z",
  "source": {
    "name": "The Jakarta Post",
    "slug": "the-jakarta-post",
    "url": "https://www.thejakartapost.com/opinion/2026/09/05/analysis-external-debt-rises-current-account-deficit-widens.html"
  },
  "original_language": "en",
  "account": "Indonesia's external debt and current account deficit are both on the rise, according to recent analysis. The country's current account deficit reached an alarming US$12.5 billion in the second quarter of 2026, or 3.3 percent of GDP. This is a significant increase from the previous quarter, when the deficit was only $3.6 billion, or 1.0 percent of GDP. Moreover, the deficit surpassed the previous peak of $10.1 billion recorded in Q2 2013. The sharp deterioration occurred within just three months, with the deficit widening by approximately $8.9 billion in that period.\n\nBank Indonesia (BI) has attributed the deterioration to several factors. The oil and gas trade deficit has widened due to higher oil prices, while the non-oil and gas trade surplus has narrowed as imports increased. Additionally, the primary income deficit has become larger. Regarding external debt, it increased by 4.4 percent year-on-year to reach $453.4 billion in the second quarter of 2026. The growth was primarily driven by higher government and central bank liabilities, although private sector external debt contracted at a slower pace.\n\nBI noted that while government external debt grew at a moderate pace, the overall external debt-to-GDP ratio has risen from 29.6 percent in Q1 to 30.6 percent in Q2. This indicates that external debt is growing faster than nominal GDP. The analysis highlights the potential risks associated with this trend, particularly if the current account deficit continues to widen and is financed through debt-creating inflows.",
  "summary": "Several of the country’s external sustainability indicators have weakened, as reflected in a widening current account deficit and rising external debt and external debt-to-gross domestic product ratio. The development is not entirely unexpected, as the government has signaled a greater willingness to rely on debt financing to support its growth agenda.",
  "key_points": [],
  "editors_take": "The widening current account deficit and rising external debt pose potential risks to Indonesia's economy, indicating that external debt is growing faster than nominal GDP and may rely on debt-creating inflows.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Jakarta Post Academia",
        "title": "Analysis: External debt rises, current account deficit widens",
        "url": "https://urgent.news/2026/09/05/analysis-external-debt-rises-current-account-deficit-widens-5698824",
        "published": "2026-09-05T00:00:03.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}