Indonesia, Southeast Asia's largest economy, logged its first trade deficit in six years in May. The surge in import values was driven by rising oil prices, which have escalated due to the ongoing conflict in Iran, coupled with the weakening of the rupiah currency. At the same time, exports of key commodities from Indonesia declined, further contributing to the trade shortfall.
The country's reliance on imported oil has made it particularly vulnerable to global energy price fluctuations. A photo by Yuki Kohara highlights oil storage tanks in Jakarta, underscoring Indonesia's dependence on imported energy.
This development marks a significant shift for Indonesia's trade balance, reflecting broader economic pressures from international geopolitical events and currency movements.
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