Indonesia Records First Trade Deficit in Six Years as Imports Surge and Inflation Accelerates
- brg_news_room
- Jul 1
- 1 min read
Indonesia: Indonesia posted a USD 1.61 billion trade deficit in May, its first in six years and the widest since April 2019, as exports fell 5.73% year-on-year to USD 23.2 billion, driven by a 7% decline in mining exports, while imports rose 22.16% to USD 24.81 billion, supported by a 99.5% increase in refined oil purchases, a 13% rise in import volume and a 25.2% increase in raw material imports. Meanwhile, annual inflation accelerated to 3.34% in June from 3.08% in May, with core inflation rising to 2.76% from 2.59%, moving closer to the central bank's 1.5%–3.5% target range, while Bank Indonesia maintained its policy rate at 5.75% after raising rates by a cumulative 100 basis points since mid-May to support the rupiah and contain inflation.
Source: Reuters
