- Indonesia’s trade surplus reached USD 3.45 Bn, with exports decreased by -8.56% MoM (+4.68% YoY) and imports declined at -15.18% MoM (-2.67% YoY).
- Declining commodity prices still became the main drivers of the drop in exports. Meanwhile, government policies, including import restrictions on key staples (rice, corn, sugar, and salt) and potential curbs on manufactured goods, could further suppress imports but raise concerns over inflation and domestic capacity.
- BI is likely to consider further rate cut(s) to support growth but may have to tread cautiously given volatility in capital flows.
