Jakarta. Indonesia recorded a $7.8 billion balance of payments deficit in 2025, reversing a $7.2 billion surplus in 2024, according to data released Friday by Bank Indonesia.

The central bank said tighter global financial conditions, driven by US tariff policies and prolonged geopolitical tensions, lifted risk premiums and prompted investors to adopt a more cautious stance, resulting in net outflows from portfolio and other investments last year.

“US tariff policies and ongoing global geopolitical tensions increased risk premiums in international financial markets, leading investors to be more cautious and triggering net capital outflows in 2025,” Bank Indonesia said in its report.

On a quarterly basis, however, the balance of payments booked a $6.1 billion surplus in the fourth quarter of 2025, rebounding from a $6.4 billion deficit in the previous quarter.

The improvement was supported by a wider goods trade surplus, underpinned by stronger export performance — particularly in manufactured products — Bank Indonesia spokesperson Ramdan Denny Prakoso said in a statement.

For the full year, Indonesia booked a trade surplus of $41 billion, up sharply from $31.3 billion in 2024. Foreign exchange reserves also edged higher to $156.5 billion at the end of 2025, from $155.7 billion a year earlier.

Meanwhile, the country’s current account deficit narrowed significantly to $1.5 billion, equivalent to 0.1% of gross domestic product, improving from a $8.6 billion deficit in 2024.