Indonesia's record trade deficit casts more clouds on economy
JAKARTA (REUTERS) - Indonesia's trade deficit widened to a record in July, showing the difficult road policymakers face in shrinking a big current account gap, which has battered the currency and confidence in Southeast Asia's largest economy.
Also on Monday, Indonesia reported that annual inflation in August was the highest since January 2009, at 8.79 percent, and a survey showed that manufacturing activity contracted sharply last month.
Indonesia has been one of the worst hit in the recent sell-off in emerging markets due to its rising current account deficit, which was a near-record US$9.8 billion (S$12.5 billion) in the second quarter. The current account is the sum of a country's trade balance and investment income.
In July, the trade deficit widened a larger-than-expected US$2.31 billion from a revised US$880 million the previous month due to a rise in oil imports, the statistics bureau said on Monday.