Indonesia's trade balance flipped to deficit as oil and gas exports fell to $1.07bn, pressuring the rupiah and fiscal accounts.

Indonesia's trade balance swung to a deficit in June as oil and gas exports plunged to $1.07bn, while imports surged to $25.91bn, reversing the surplus of previous months. The deterioration stems from the same energy shock that is reshaping the country's external position, with the oil and gas sector dragging down overall exports even as manufacturing and ICT show resilience. Meanwhile, the IRS finalized rules narrowing the car loan interest deduction, a regulatory shift that will reduce the tax benefit for US consumers and could temper demand for auto loans.