Non-oil and gas exports growth offset rising imports, narrowing the trade deficit but raising twin-deficit risks for Southeast Asia’s largest economy.
Indonesia’s June 2026 trade deficit narrowed as non-oil and gas exports rose, partially countering a surge in imports. The deficit reduction reflects improving external demand but masks underlying pressures from rapid import growth.
The trade gap remains vulnerable to geopolitical tensions and energy market volatility, with economists warning of a potential twin-deficit scenario affecting both fiscal and current account balances. However, long-term structural reforms, including downstream industrialization and energy security programs, aim to bolster resilience.
While the deficit may raise short-term concerns, a significant portion of imports stems from capital formation and industrial expansion, supporting long-term economic growth.