Indonesia's Trade Balance Deficit in May Prompts BI to Strengthen External Resilience

Indonesia's trade balance experienced a deficit of $1.61 billion in May 2026, breaking a continuous surplus streak that had lasted since May 2020. This marks the first time in six years that the country's trade balance has fallen into deficit, prompting Bank Indonesia (BI) to reaffirm its commitment to bolstering external resilience.

According to data from the Central Statistics Agency (BPS), the deficit was primarily influenced by a widening gap in the oil and gas trade balance, which reached $3.76 billion in May. This was attributed to a larger decrease in oil and gas exports compared to imports. Conversely, the non-oil and gas trade balance continued to show a surplus of $2.15 billion, supported by robust exports of natural resources like mineral fuels and nickel products.

Exports to key partners including China, the United States, and India remained the main drivers of Indonesia's non-oil and gas exports. Despite the May deficit, the cumulative trade balance for January-May 2026 still registered a surplus of $4.03 billion.

In response to the trade deficit, Bank Indonesia is actively implementing various policies aimed at strengthening external resilience. These include stabilizing the rupiah's exchange rate through interventions in foreign exchange and bond markets, encouraging the placement of Export Proceeds (DHE) within the domestic financial system, and promoting Local Currency Transactions (LCT) to increase the use of local currencies in trade with partner countries. BI is also advancing cross-border payment system digitalization via QRIS, managing the benchmark interest rate to influence capital flows, and engaging in international cooperation to enhance foreign exchange liquidity amidst global volatility.