The current account deficit in Indonesia widened 64.3% to $9.1 billion in Q4 2018 from a $5.6 billion gap a year earlier. It was the largest current account deficit since Q2 2014, as the goods account switched to a $2,576 million shortfall from a $3,086 million surplus a year earlier, mainly due to a 12% surge in imports and a 1% drop in exports. In contrast, the services gap narrowed to $1,623 million from $2,135 million, amid a rise in travel services due to the Asian Para Games in Jakarta and the IMF-World Bank Annual Meeting in Bali. Also, the primary income deficit was down to $6,988 million from $7,752 million, mainly due to lower interest payments on government debt and the secondary income surplus increased to $2,039 million from $1,235 million. Considering full 2018, Indonesia recorded a $31.06 billion current account deficit, equivalent to 2.98% of the GDP, almost twice a $16.2 billion gap recorded in 2017, mainly due to higher imports of oil, raw materials and capital goods. Current Account in Indonesia averaged -931.28 USD Million from 1981 until 2018, reaching an all time high of 3795 USD Million in the third quarter of 2006 and a record low of -10125.60 USD Million in the second quarter of 2013.
Current Account in Indonesia is expected to be -5660.00 USD Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Current Account in Indonesia to stand at -2100.00 in 12 months time. In the long-term, the Indonesia Current Account is projected to trend around -3100.00 USD Million in 2020, according to our econometric models.