Indonesia's trade deficit registered the highest ever level of $2.31 billion in July, the national statistic bureau said on Monday. Indonesia's export decreased by 6.01 percent to $15.11 billion in July on yearly basis, while import rose by 6.5% to $17.42 billion, Xinhua reported.
Suryamin, head of the national statistic bureau, said the high consumption of fuel before and after Islamic festivity in July and August was one of the main contributive factors of the deficit. The government increased subsidised fuel price by up to 44% June 22 as an effort to ease import of the commodity.
Rising demand of subsidised fuel has increased import of the commodity that widens the country's trade deficit gap, weakens the rupiah, decreases central bank foreign exchange reserve and accelerates imported inflation. To boost export, the government has pushed export of mineral ores.