Indonesia's 2025 Balance of Payments Signals Currency Challenges

By Editorial Team 22/04/2024
Indonesian trade campaign
Summary

The Indonesian government is targeting a surplus in the balance of payment (NPI) in the range of US$2.5 billion to US$6.8 billion for 2025. The upper end of this target is close to the 2023 result of US$6.3 billion. This information is outlined in the Indonesian Government's 2025 Work Plan document. This projected surplus is supported by a positive trade balance, driven by export growth and a surplus in the capital and financial account, backed by foreign direct investment (FDI) and portfolio investment.

With these expectations, foreign exchange reserves are anticipated to fall between US$149.5 billion and US$153.7 billion, equating to approximately 6.1 months of import financing. According to the 2025 Work Plan, Indonesia's external stability is expected to strengthen in 2025, as the country has successfully navigated a critical period in 2024, marked by a political transition and a change in leadership.

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