Indonesia’s economic outlook faced renewed scrutiny on Friday after a combination of weakening manufacturing activity and a widening trade deficit prompted warnings from lawmakers.
The parliament’s Commission XI urged the government to remain vigilant as June data revealed headwinds across key macro indicators.
The manufacturing Purchasing Managers’ Index (PMI) declined in June, signaling a slowdown in factory output and new orders.
This contraction comes as the country’s trade balance slipped further into deficit, reflecting persistent pressure on the external sector.
Rising monthly inflation compounded the concerns, adding to the list of challenges facing policymakers.
Commission XI highlighted the convergence of these negative trends, emphasizing the need for coordinated policy measures to stabilize growth and contain price pressures.