Indonesia announces record trade deficit for July

JAKARTA - Inflation was better than expected, but any sense of relief dissipated when Indonesia announced a very large trade deficit. With the market so focussed on deficits, reaction in currency markets was, not surprisingly, negative. Indonesia’s July trade deficit was the largest on record at USD2.31 billion, widening from a deficit of US$857 million in June. Exports were weaker and imports much stronger than expected.