Indonesia Posts First Trade Deficit in 6 Years as Oil-Fueled Imports Soar
Updated
Updated · Nikkei Asia · Jul 1
Indonesia Posts First Trade Deficit in 6 Years as Oil-Fueled Imports Soar
2 articles · Updated · Nikkei Asia · Jul 1
Summary
May marked Indonesia’s first trade deficit in six years, a reversal for Southeast Asia’s largest economy after imports jumped and export earnings weakened.
Higher oil prices linked to the Iran war inflated the country’s energy import bill, while a weaker rupiah made those purchases more expensive.
Exports also fell 5.73% year on year to $23.20 billion in May, with non-oil and gas shipments down 4.50% to $22.45 billion as key commodity sales declined.
The deficit underscores Indonesia’s vulnerability to imported oil and external price shocks, even as softer commodity exports add pressure to its trade balance.