Sept. 6 (Bloomberg) -- Indonesia recorded its first current account deficit in almost three years for the second quarter of 2008 as oil prices increased.

Southeast Asia's biggest economy turned to a $1.5 billion deficit in its current account in the three months to June, from a $2.3 billion surplus in the first quarter, the nation's central bank said in a statement dated yesterday. Indonesia's trade surplus narrowed as growth in non-oil exports slowed, while its oil trade deficit widened.

Crude output in the country dropped about 40 percent in the past 12 years, turning Indonesia into a net oil importer. Crude oil prices almost doubled in the 12 months ended June 30, and fell 24 percent so far this quarter.

``The worsening of the oil trade surplus was due to a surge in oil import needs'' because of higher crude prices and domestic fuel consumption, Helmi Arman, an economist at PT Bank Danamon Indonesia, said in an e-mail. Going forward, the recent decline in oil prices should ``reverse these negative forces that worsened the current account.''

The rupiah fell 1.3 percent to 9,375 against the U.S. dollar yesterday, its biggest decline since June 8 last year.

``We can't rule out a further deterioration in sentiment against the rupiah in the near term,'' Arman said. Still he sees ``no apparent reason for a dramatic fall in the currency.''

Bank Indonesia Governor Boediono said yesterday the central bank will stay in the market to support the local currency.

Indonesia had a $1.3 billion balance of payment surplus in the second quarter, compared with $1.03 billion surplus in the preceding three months, Bank Indonesia said. Direct and portfolio investments from abroad increased in the quarter.

The country last recorded a current account deficit in the third quarter of 2005.

To contact the reporters on this story: Naila Firdausi in Jakarta at nfirdausi@bloomberg.net;

Last Updated: September 6, 2008 02:50 EDT