Indonesia posted its second consecutive monthly trade deficit in June, though the shortfall came in much smaller than anticipated, as stronger commodity exports partially offset a sharp jump in imports. Separate data showed inflation eased in July. 

The trade gap stood at $450 million, according to official figures released August 3, beating the $790 million forecast in a Reuters poll. That followed May's $1.61 billion deficit, which was the country's first in six years. 

While the data offer some tentative signs of stabilisation, economists warn that Indonesia's external position remains fragile, citing a slowing Chinese economy, rising import costs, and ongoing pressure on the rupiah.

June exports climbed 8.84% year-on-year to $25.46 billion, outperforming expectations of 0.25% growth, helped by higher shipments of nickel products and palm oil-related goods. 

"Indonesia's external balance is likely to remain under pressure, limiting upside for the rupiah despite a more benign global energy backdrop," said Bank Danamon economist Faiz Irman, citing by Reuters.

Imports surged 34.27% to $25.91 billion, exceeding analysts' forecast of 25.30% growth. The increase was broad-based, with oil and gas purchases soaring 105.15%, according to Statistics Indonesia.

A new regulation requiring exporters of coal, palm oil, and ferroalloys to notify a unit of sovereign wealth fund Danantara did not appear to affect shipment figures, Faiz noted. 

July's annual inflation rate cooled to 2.88% from 3.34% in June, below the median forecast of 3.20% and marking the lowest level in three months. It remains comfortably within BI's 1.5%-3.5% target range.

Core inflation, excluding volatile food and administered prices, stood at 2.76%, nearly unchanged from June and close to market expectations. 

Despite the easing, Bank Permata economist Faisal Rachman cautioned that risks remain, including potential food-price pressures from the El Nino weather pattern and energy-price volatility tied to prolonged Middle East conflicts.