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fxJul 6, 2026, 7:12 PM

Indonesia's First Trade Deficit Since Pandemic Raises External Risk: SocGen

Societe Generale warns that Indonesia's May 2026 trade deficit, the first since the pandemic, coupled with a record oil and gas deficit, heightens external vulnerability.

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Societe Generale analyst Kunal Kundu highlighted Indonesia's trade data for May 2026, which showed the first monthly deficit since the COVID-19 pandemic. The deficit was driven by a record shortfall in the Oil and Gas segment, raising concerns about the country's external position.

The report suggests that the deteriorating trade balance could pressure the Indonesian rupiah and increase reliance on external financing, posing risks to macroeconomic stability.

Source: FXStreet Forex News