Indonesia Narrows Trade Deficit to $450 Million as Export Engine Surges

JAKARTA, Investortrust.id — Indonesia drastically narrowed its trade deficit in June 2026 to $450.5 million. Strong global demand for raw commodities and manufactured goods helped erase most of the deep $1.61 billion trade gap recorded in May.

Total exports jumped 9.72% month-on-month to $25.46 billion. Total imports grew at a more modest pace of 4.41% to reach $25.91 billion over the same period.

The sharp recovery in trade metrics provides vital protection for the Indonesian Rupiah. Currency markets have faced constant pressure from global interest rate shifts and persistent energy import demands.

A shrinking deficit strengthens Southeast Asia's largest economy and offers Bank Indonesia, the country's central bank, room to manage policy without draining foreign exchange reserves.

Export Engine Rebounds

The non-oil and gas sector served as the primary growth driver for exports in June 2026. Shipments in this category surged 8.68% month-on-month to hit $24.39 billion.

Nickel products led the gainers among key non-oil exports, surging 62.27% in the first half of 2026 compared to the same period in 2025. Processing industries accounted for 82.02% of all exports during the first six months of the year, underscoring the success of domestic industrial policy.

China remained Indonesia's top export destination, absorbing $6.02 billion in goods in June alone, followed by the United States at $3.09 billion and India at $1.82 billion.

Energy Imports Weigh Down Surplus

Heavy reliance on foreign crude and refined petroleum continues to drag down overall balance-of-trade performance. The oil and gas sector ran a wide $3.49 billion deficit in June, masking a healthy $3.04 billion surplus generated by non-oil trade.

Imported raw materials and intermediate capital goods dominated inbound shipments, comprising 71.37% and 19.94% of total imports respectively during the January-to-June window.

According to data released by the government agency, cumulative trade performance for the first half of 2026 maintained a positive balance, leaving Indonesia with a total surplus of $3.58 billion.