Indonesia Posts First Trade Gap in 19 Months
Indonesia recorded a trade deficit 0.27 billion in July of 2017, compared to a 0.63 USD billion of surplus a year earlier and missing market estimates of a 1.1 USD billion surplus. It was the first deficit in trade balance since December 2015, as exports jumped 41.12 percent from a year earlier to 13.62 USD billion while imports soared 54.02 percent to 13.89 USD billion.
During July, both exports and imports rose sharply, due to a low base from July 2016, when the Eid-al-Fitr holidays at the end of the fasting month fell. This year, the holidays were in June.
Compared to the previous month, exports went up 16.83 percent, as non-oil and gas products increased by 19.85 percent while sales oil exports decreased by 7.79 percent. By categories, outbound shipments went up for: animal and vegetable fats and oils (7.64 percent), mineral fuels (17.17 percent), rubber and rubber goods (28.08 percent), vehicles and parts (52.28 percent), and machinery and aircraft mechanics (39.87 percent). In contrast sales decreased for: jewelry/gems (-2.81 percent), iron and steel (-4.32 percent), inorganic chemicals (-8.0 percent), pharmacautical industry produtcs (-20.53 percent), and aluminium (-24.66 percent). Sales increased to all major destination countries: Singapore (9.66 percent); Malaysia (31.54 percent); Thailand (30.83 percent); Germany (11.52 percent); the Netherlands (5.80 percent); Italy (23.85 percent); China (18.54 percent); Japan (32.76 percent); the US (16.67 percent); India (6.95 percent); Australia (16.57 percent), and Taiwan (18.01 percent). In contrast exports to South Korea edged down (-0.37 percent).
Imports surged 54.02 percent from a year earlier to 13.89 USD billion in July, as purchases of non-oil and gas jumped 61.23 percent to 12.11 billion and those of oil and gas increased 18.07 percent to 1.78 USD billion.
Compared to the prior month, imports jumped by 39 percent. While purchases of non-oil and gas surged 44.31 percent, those of oil and gas went up by 11.12 percent. Imports rose the most for capital goods (62.57 percent to 2.36 USD billion), followed by raw material (40.79 percent to 10.43 USD billion), while consumption goods fell (-3.15 percent to 1.09 USD billion). Imports rose from the majority of trading partners: Singapore (34.34 percent); Thailand (40.63 percent); Malaysia (28.80 percent); the Netherlands (28.78 percent); Italy (72.87 percent); China (46.16 percent); Japan (60.74 percent); the US (44.54 percent); South Korea (49.09 percent); Australia (16.91 percent); Taiwan (70.72percent); and India (66.9 percent). In contrast, imports from Germany fell 7.16 percent.
Considering January to July 2017, the trade balance was recorded 7.39 USD billion surplus with exports rising by 17.32 percent compared to the same period a year earlier to 93.59 USD billion and imports increasing by 14.91 percent to 86.20 USD billion.
8/15/2017 5:49:28 AM