Indonesia Posts US$1.61 Billion Trade Deficit in May, First in Six Years

Indonesia’s trade balance swung to a deficit of US$1.61 billion in May, marking the first monthly shortfall in six years, according to the Central Statistics Agency (BPS). The deficit ended a 72-month run of consecutive surpluses that began in May 2020.

BPS official Ateng Hartono explained that the deficit was primarily caused by the oil and gas sector, which recorded a shortfall of US$3.76 billion, driven by imports of refined petroleum products and crude oil.

Overall, imports surged to US$24.81 billion, a 22.16% increase compared to the same month last year. Oil and gas imports rose sharply by 70.78% year-on-year to US$4.51 billion, while non-oil and gas imports reached US$20.30 billion, up 14.69% annually. In contrast, exports totalled US$23.20 billion, failing to keep pace with the import growth.