Insider Stories - Indonesia's central bank announced on Wednesday the nation's huge current account deficit narrowed in the third quarter of this year, but analysts said the figure remains concerning and suggest it remains vulnerable to more capital outflows.

Bank Indonesia (BI) data showed the current account deficit stood at 3.8 percent of the gross domestic products (GDP) in July-September period, or equivalent to $8.4 billion.

That was smaller than the 4.4 percent of GDP recorded in the previous quarter ($9.8 billion).

BI said the figure saw an improvement due to higher a higher surplus in oil and gas trade, while non-oil and gas imports declined. The current account, or a broad measure of trade and investment for a country, also improved on higher foreign direct investment.

The central bank had expected smaller figure of 3.4 percent.

"Large current account deficit narrowed in the third quarter, but less than expected and not enough to end concerns about the vulnerability of the Southeast Asian economy to more capital outflows when the U.S. Federal Reserve tapers its asset-buying stimulus," said Bank Danamon Indonesia economists Dian Ayu Yustina and Anton Gunawan in a short report to clients on Wednesday.

Soaring current account has caused pressure on the rupiah as it means more dollar leaving the country. The rupiah has fallen 18 percent this year, which means the cost of importing goods are getting more expensive.