Friday September 22 2017
Indonesia Cuts Key Rate to 4.25%
Bank Indonesia | Joana Taborda | joana.taborda@tradingeconomics.com

The central bank of Indonesia unexpectedly cut its key repo rate by 25bps to 4.25 percent on September 22nd 2017, following a similar 25bps cut in the previous meeting. The move aimed to strengthen banking intermediary function and support economic growth. Policymakers said current policy stance is sufficient to achieve inflation and macroeconomic targets, suggesting further loosening is unlikely in the near future. The lending and the deposit facility rates were also lowered by 25bps each to 5 percent and 3.5 percent respectively.

Excerpts from the Bank Indonesia Press Release:

The BI Board of Governors agreed on 20th and 22nd September 2017 to lower the BI 7-day Reverse Repo Rate 25 basis points (bps) from 4.50% to 4.25%, while also lowering the Deposit and Lending Facility rates 25 bps to 3.50% and 5.00% respectively, effective 25th September 2017. The decision was consistent with low inflation, estimated to continue till the end of 2017, and 2018 and 2019 inflation projected to stay below the mid range of the target, as well as current account deficit under control within a heatlhy range. External risks, specifically related to FFR hike and US balance sheet normalization plans, have also been accounted for. The rate cut is expected to support the ongoing improvements in banking intermediation and domestic economic recovery. Bank Indonesia views that the current level of policy rate is sufficient in accordance with the forecast of inflation and other macroeconomics. Furthermore, Bank Indonesia will continue to coordinate with the Government to reinforce policy mix in order to maintain macroeconomic stability and strengthen economic recovery momentum.

Moving forward, economic growth is expected to improve along with more expansive government spending and Bank Indonesia’s monetary policy easing. Consequently, Bank Indonesia maintains its prediction for 2017 national economic growth in the 5.0-5.4% range, accelerating in 2018 to 5.1-5.5%.

Moving forward, low inflation is expected to persist within the target range, supported by anchored expectations, relatively stable exchange rates and the downward global inflation trend. Nevertheless, Bank Indonesia will continue to strengthen policy coordination with the central government and regional administrations to control inflation, to support achievements of the inflation targets at 4.0±1% in 2017 and at 3.5±1% in 2008 and 2019.

Moving forward, bank intermediation is expected to improve in line with BI’s decision to perform rate cut and macroprudential policy easing, while banking and corporation consolidation continues.. In addition, economic financing through capital markets is also expected to improve, in line with financial markets deepening efforts.




Friday September 15 2017
Indonesia Trade Surplus Largest in Near 6 Years
Statistics of Indonesia l Chusnul Ch Manan| chusnul@tradingeconomics.com

Indonesia recorded a trade surplus 1.72 billion in August of 2017, compared to a 0.37 USD billion of surplus a year earlier and above market estimates of a 0.52 USD billion surplus. It was the largest surplus in trade balance since November 2011, as exports jumped 19.24 percent from a year earlier to 15.21 USD billion while imports went up 8.89 percent to 13.49 USD billion.

In August, exports jumped 19.24 percent from a year earlier to 15.21 USD billion, as sales of non-oil and gas products surged 19.94 percent while those of oil and gas rose 12.15 percent.
 
Compared to the previous month, exports went up 11.73 percent, as non-oil and gas products increased by 11.93 percent while sales oil exports rose by 9.61 percent.
 
By categories, outbound shipments went up for: animal and vegetable fats and oils (22.31 percent); mineral fuels (3.81 percent); electrical machinery/aparatus (12.73 percent); knit goods (23.42 percent), and jewelry/gems (107.47 percent). In contrast sales decreased for: various chemicals products (-8.18 percent); paper/cardboard (-6.15 percent); copper (-2.46); inorganic chemiclas (-9.04 percent), and ships (-46.28 percent). Sales increased to all major destination countries: Singapore (32.16 percent); Malaysia (4.23 percent); Germany (1.78 percent); Italy (8.22 percent); China (21.59 percent); the US (15.92 percent); India (13.68 percent); Australia (24.31 percent), and Taiwan (12.01 percent), and South Korea (28.70 percent). In contrast exports fell to Thailand (-4.38 percent); the Netherlands (-0.79 percent), and Japan (-5.63 percent).  
 
Imports increased 8.89 percent from a year earlier to 13.49 USD billion in August, as purchases of non-oil and gas rose 8.85 percent to 11.53 billion and those of oil and gas went up 9.11 percent to 1.96 USD billion.
 
Compared to the prior month, imports fell by 2.88 percent. While purchases of non-oil and gas dropped 4.80 percent, those of oil and gas went up by 10.16 percent. Imports dropped the most for capital goods (-5.95 percent to 2.22 USD billion), followed by raw material (-3.47 percent to 10.07 USD billion),  while consumption goods rose (9.39 percent to 1.17 USD billion). Imports fell from: Thailand (-12.12 percent); Japan (-10.17 percent); the US (-8.87 percent); South Korea (-14 percent), and India (-5.30 percent). In contrast, imports increased from Singapore (4.20 percent); Malaysia (4.47 percent); Germany (10.10 percent); the Netherlands (21.97 percent); Italy (23.21 percent); China (0.53 percent); Australia (13.85 percent), and Taiwan (7.50percent).
 
Considering January to August 2017, the trade balance was recorded 9.11 USD billion surplus with exports rising by 17.58 percent compared to the same period a year earlier to 108.79 USD billion and imports increasing by 14.06 percent to 99.68 USD billion.
 
 




Tuesday August 22 2017
Indonesia Cuts Key Rate to 4.5%
Bank Indonesia l Joana Taborda | joana.taborda@tradingeconomics.com

The central bank of Indonesia unexpectedly lowered its benchmark interest rate by 25bps to 4.5 percent on August 22nd of 2017, compared with market expectations of no changes. It is the first cut in borrowing cost since October, aiming to strengthen banking intermediary function and support economic growth. The lending and the deposit facility rates were also lowered by 25bps each to 5.25 percent and 3.75 percent respectively.

Excerpts from the Bank Indonesia Press Release:

The BI Board of Governors agreed on 21st - 22nd August 2017 to lower the BI 7-day Reverse Repo Rate 25 basis points (bps) from 4.75% to 4.50%, while also lowering the Deposit and Lending Facility rates 25 bps to 3.75% and 5.25% respectively, effective 23rd August 2017. This will be followed by a decrease in interest rates on other monetary instruments.The decision was consistent with the rooms for monetary policy easing, as evidenced by low inflation with 2017 and 2018 inflation projected within the target range, and current account deficit under control within a healthy range. External risks, relating to the Fed hiking its Fed Funds Rate (FFR) and unwinding its balance sheet, have decreased, resulting in the still-attractive domestic interest rate in Indonesia, compared to the external interest rate. The policy rate easing is expected to reinforce intermediation in the banking sector, to strengthen financial system stability as well as support higher economic growth. Bank Indonesia constantly strengthens its mix of monetary, macroprudential and payment system policy to maintain macroeconomic and financial system stability. Furthermore, Bank Indonesia will continue to strengthen coordination with the Government and other authorities to ensure that inflation control, growth stimulus, and structural reforms are going well enough to support sustainable economic growth.

Moving forward, economic growth is expected to improve on the back of increased investment and consumption activities, in line with more expansive government spending and additional rooms to ease monetary policy. Bank Indonesia predicts growth in the 5.0% - 5.4% range for 2017 and 5.1%-5.5% range for 2018.

Moving forward, inflation is expected to remain low within target, on the back of adequate supply compared to demand (output discrepancy), stable exchange rate, global trend of decreased inflation, and low risk in administered prices hike. Bank Indonesia will continue to strengthen coordination with the central government and regional administrations to maintain stable and low inflation.

Banking intermediation is expected to improve in 2018,with credit and deposit growth expected at 10-12% and 9-11%, respectively. To support economic funding as well as financial market deepening, Bank Indonesia with related authorities will speed up consolidation process in the banking sector while promoting credit distribution and corporate funding through financial markets. The policy, along with policy rate easing, is aimed at boosting an optimum banking intermediation to support national economic recovery.


Tuesday August 15 2017
Indonesia Posts First Trade Gap in 19 Months
Statistics of Indonesia l Chusnul Ch Manan| chusnul@tradingeconomics.com

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.
 
 


Monday August 07 2017
Indonesia Economy Expands 4% QoQ in Q2
Statistics of Indonesia l Chusnul Ch Manan| chusnul@tradingeconomics.com

Indonesia's GDP expanded 4 percent quarter-on-quarter in the three months to June of 2017, following a 0.34 percent decline in the previous period and missing market consensus of 4.10 percent. It was the first quarterly expansion in the economy since the third quarter of 2016, boosted by private consumption, fixed investment and government spending.

On the expenditure side, private consumption advanced 1.32 percent (0.15 percent in Q1) and fixed investment grew 2.95 percent (-5.45 percent in Q1). Also, private non-profit consumption went up 2.93 percent (-1.69 percent in Q1) and government spending expanded 29.37 percent (-45.55 percent in Q1). Meanwhile, exports went down 2.09 percent (0.57 percent in Q1) and imports decreased 1.55 percent (-4.50 percent in Q1). 

On the production side, output grew for: Educational services (2.99 percent from -10.39 percent in Q1); government administration (0.11 percent from -7.91 percent); healthcare (0.63 percent from -1.72 percent); transport and storage (2.91 percent from -1.18 percent); mining and quarrying (0.41 percent from -0.93 percent); manufacturing (2.84 percent from 0.55 percent); wholesale and retail trade (2.82 percent from -0.06 percent); business services (2.52 percent from 2.21 percent); other services (2.56 percent from 1.89 percent); water and waste management (1.26 percent from 0.69 percent); information and communication (5.65 percent from 0.31 percent); finance and insurance (1.96 percent from 1.91 percent); agriculture (8.44 percent from 15.59 percent); and real estate (1.16 percent from 1.79 percent). In contrast, output contracted for electricity and gas (-0.99 percent from -3.45 percent in Q1).

Year-on-year, the economy expanded 5.01 percent, the same pace as in the first quarter but below market estimates of a 5.10 percent growth.




Tuesday August 08 2017
Indonesia GDP Grows 5.01% in Q2, Less Than Expected
Statistics of Indonesia l Chusnul Ch Manan | chusnul@tradingeconomics.com

The Indonesian economy expanded 5.01 percent year-on-year in the second quarter of 2017, the same pace as in the previous period and below market expectations of 5.10 percent. Growth was driven by private consumption and fixed investment while exports rose at a slower pace and government spending fell. On a quarterly basis, the economy expanded by 4.00 percent in Q2.

On the expenditure side, private consumption advanced 4.95 percent (4.94 percent in Q1) and fixed investment grew 5.35 percent (4.78 percent in Q1). Also, private non-profit consumption went up 8.49 percent (8.05 percent in Q1) while government spending contracted 1.93 percent (2.68 percent in Q1). Meanwhile, exports went up 3.36 percent (8.21 percent in Q1) and imports increased 0.55 percent (5.12 percent in Q1). 

On the production side, output grew for: Agriculture (3.33 percent from 7.12 percent in Q1); mining and quarrying (2.24 percent from -0.64 percent); manufacturing (3.54 percent from 4.24 percent); water and waste management (3.67 percent from 4.39 percent); construction (6.96 percent from 5.95 percent); wholesale and retail trade (3.78 percent from 4.96 percent); transport and storage (8.37 percent from 8.03 percent); hotel and restaurant (5.07 percent from 4.68 percent); information and communication (10.88 percent from 9.13 percent); finance and insurance (5.94 percent from 5.99 percent); real estate (3.86 percent from 3.67 percent); business services (8.14 percent from 6.80 percent); education (0.90 percent from 4.09 percent); healthcare (6.40 percent from 7.10 percent); and other services (8.63 percent from 8.01 percent). In contrast, output contracted for: Electricity and gas (-2.53 percent from 1.60 percent in Q1); and government administration (-0.03 percent from 0.22 percent).

The government targets the economy to grow 5.2 percent this year, while the central bank forecasts growth in the middle of the 5.0-5.4 percent range.




Friday July 21 2017
Indonesia Leaves Monetary Policy Unchanged
Bank Indonesia l Rida Husna | rida@tradingeconomics.com

Indonesia's central bank left its benchmark 7-day reverse repo rate unchanged at 4.75 percent on July 20th 2017, in line with market expectations. The overnight deposit facility rate and the lending facility rate were also left steady at 4 percent and 5.5 percent, respectively. Policymakers said the decision is consistent with efforts to maintain macroeconomic and financial stability while still encouraging domestic economic recovery process.

Excerpts from the Bank Indonesia Press Release: 

The global economy is improving as projected, despite several risks that demand vigilance. On one hand, the US economic growth is expected to be lower after the limited impact of fiscal policy and investment was squeezed by a potentially lower oil price. On the other hand, China’s economy is expected to accelerate on the back of stronger consumption and rising exports. The economy in Europe is also predicted to gain momentum as consumption increases, while export performance and optimism in the economy have improved. Moving forward, several global risks require close monitoring, especially coming from the US, including the planned FFR hike, the Fed’s plan to unwind its large balance sheet, and uncertainties in the fiscal policy.

Indonesia’s economic recovery process continue over the second quarter of 2017 albeit not as strong as previously projected. Consumption growth is potentially lower, as reflected by slower retail sales. Exports continued to grow, albeit below the previous projection due to slower growth of export volume for primary and manufacturing goods. In contrast, investment performance improves, especially in the nonbuilding sector related to natural resources, while building investment remains solid supported by government infrastructure projects but also by the private property sector. Going forward, economic growth is expected to increase, supported by stronger export performance and investment. With improvements in the second half of the year, Bank Indonesia predicts the 2017 national economic growth to stay within the 5.0-5.4 percent range. Several risks on the economic growth prospect still demand vigilance, especially related to slow domestic demand along with the ongoing consolidation in the corporate and banking sectors

Indonesia’s trade balance recorded a surplus in the second quarter of 2017. The trade surplus stood at USD3.5 billion, mainly supported by the large surplus in the non-oil and gas trade. Non-oil and gas export growth was recorded at 6.8 percent (yoy), specifically due to a hike in primary commodity rices, while non-oil and gas import growth was recorded at 4.9 percent, especially consumption goods import. Supported by the strong investor confidence, foreign capital inflow in Indonesia’s market on the second quarter of 2017 was recorded at USD4.3 billion, making the non-resident inflow through to the end of June 2017 to accumulate to USD9.6 billion. The position of official reserve assets at the end of the second quarted of 2017 was recorded at USD123.1 billion, down slightly from the USD121.8 billion registered at the end of the first quarter of 2017. The position of FX reserves was equivalent to 8.9 months of imports or 8.5 months of imports and servicing government external debt, which is well above the international standard of around three months.

Low headline inflation was observed in June 2017, thus supporting attainment of the 2017 inflation target, namely 4±1 percent. Consumer Price Index wa recorded at 0.69 percent June 2017, below the average rate during the Eid-ul-Fitr period for the past three years at 0.85 percent (mtm). Inflation was controlled by volatile foods and core inflation, which were lower than the historical average. Volatile foods inflation stood at 0.65 percent (mtm), below the historical average for the Eid-ul-Fitr period for past three years at 1.78 percent (mtm). This was the result of various government policies to stabilise food prices, combined with tight coordination with Bank Indonesia. Furthermore, core inflation in June 2017 was recorded at 0.26 percent (mtm), which was also below the historical average for the Eid-ul-Fitr period for past three years at 0.40 percent (mtm). 


Monday July 17 2017
Indonesia Trade Surplus Largest In 5-1/2 Years In June
Statistics of Indonesia l Chusnul Ch Manan | chusnul@tradingeconomics.com

Indonesia trade surplus rose to 1.63 USD billion in June of 2017 from 1.08 USD billion a year earlier and above market estimates of a 0.82 USD billion surplus. It was the largest trade surplus since November 2011, as exports unexpectedly fell 11.82 percent from a year earlier to 11.65 USD billion and imports contracted 17.21 percent to 10.01 USD billion.

In June, exports dropped 11.82 percent from a year earlier to 11.65 USD billion, as sales of non-oil and gas products fell 13.85 percent while those of oil and gas rose 8.74 percent.
 
Compared to the previous month, exports went down 18.82 percent, as non-oil and gas products decreased by 20.66 percent while sales oil exports edged down by 0.38 percent. By categories, outbound shipments fell for: animal and vegetable fats and oils (-16.48 percent), mineral fuels (-17.96 percent), rubber and rubber goods (-30.80 percent), vehicles and parts (-33.92 percent); machinery and aircraft mechanics (-36.39 percent). In contrast sales increased for: pulp (20.05 percent), aluminium (20.74 percent), fertlizer (11.81 percent); salt, sulfur and and chalk (10.36 percent), and other base metals (108.20 percent). Sales dropped to all major destination countries: Singapore (-30.28 percent); Malaysia (-29.96 percent); Thailand (-24.33 percent); Germany (-4.38 percent); the Netherlands (-4.54 percent); Italy (-29.74 percent); China (-10.24 percent); Japan (-18.15 percent); the US (-22.02 percent); India (-24.04 percent); Australia (-16.60 percent); South Korea (-10.00 percent); and Taiwan (-32.31 percent).

Imports contracted 17.21 percent from a year earlier to 10.01 USD billion in June, as purchases of oil and gas declined 8.80 percent to 1.62 USD billion and those of non-oil and gas went down 18.65 percent to 8.40 billion.
 
Compared to the prior month, imports slumped by 27.26 percent. While purchases of non-oil and gas decreased 29.88 percent, those of oil and gas went down by 9.79 percent. Imports went down the most for raw material (-29.32 percent to 7.43 USD billion), followed by capital goods (-25.85 percent to 1.45 USD billion), and consumption goods (-12.77 percent to 1.13 USD billion). Imports dropped from the majority of trading partners: Singapore (-22.21 percent); Thailand (-26.85 percent); Malaysia (-26.81 percent); the Netherlands (-47.33 percent); Italy (-48.90 percent); China (-37.14 percent); Japan (-19.27 percent); the US (-32.05 percent); South Korea (-26.98 percent); Australia (-27.45 percent); Taiwan (-42.57 percent); and India (-29.07 percent). By contrast, imports from Germany rose 35.90 percent.

Considering January to June 2017, the trade surplus was recorded 7.63 USD billion with exports rising by 14.03 percent compared to the same period a year earlier to 79.96 USD billion and imports increasing by 9.6 percent to 72.33 USD billion.


Thursday June 15 2017
Indonesia Leaves Rates Steady
Bank Indonesia | Joana Taborda | joana.taborda@tradingeconomics.com

The Bank Indonesia left its benchmark 7-day reverse repo rate unchanged at 4.75 percent on June 15th 2017, in line with market expectations. The overnight deposit facility rate and the lending facility rate were also left steady at 4 percent and 5.5 percent respectively, saying the decision is consistent with efforts to maintain macroeconomic and financial stability. The central bank mentioned several domestic and external risks to the economic outlook including the further rise of the Fed Funds Rate and the planned decline in its balance sheet; the results of the General Elections in the UK; the potential for declining commodity prices; the effects of administered prices on inflation and the continued consolidation of corporations and banks.

Excerpts from the Bank Indonesia Press Release: 

The BI Board of Governors agreed on 14th and 15th June 2017 to hold the BI 7-day (Reverse) Repo Rate (BI-7 day RR Rate) at 4.75%, while maintaining the Deposit Facility (DF) and Lending Facility (LF) rates at 4.00% and 5.50% respectively, effective 16th June 2017. The decision is consistent with Bank Indonesia’s efforts to maintain macroeconomic and financial system stability, while supporting a continuous domestic economic recovery. Bank Indonesia continues to monitor various global and domestic risks. Globally, the FFR hike and the Fed’s plan to unwind its large balance sheet, results of the UK election, and the potential decrease in commodity prices, especially oil, are the salient risks that demand vigilance. At home, however, the risks include the impact of adjusting administered prices (AP) on inflation, coupled with ongoing consolidation in the corporate and banking sectors. Therefore, Bank Indonesia shall continue to optimise its monetary, macroprudential and payment system policy mix to maintain macroeconomic and financial system stability. Furthermore, Bank Indonesia shall also continue to strengthen coordination with the Government to control inflation within the target corridor and support ongoing structural reforms towards sustainable economic growth.

The global economy is improving as projected, despite several risks that must be monitored. The global economic outlook is improving in line with favourable economic developments in the United States, China, Europe and Japan. Stronger consumption, investment and improving labour indicators have boosted US economic momentum, while in China the economy is expanding on the back of government and private sector investment. On the other hand, the uptick in growth in Europe and Japan was driven by exports and domestic demand. Congruent with faster global economic growth, world trade volume was also observed to accelerate. Meanwhile, high international commodity prices are expected to persist but with potential downside risks linked to abundant supply that is outstripping the limited demand. Bank Indonesia believes that the FFR hike on 14th June 2017 has been anticipated, enabling Indonesia’s financial market to remain conducive, supported by positive perception of macroeconomic management and Indonesia’s fundamental conditions. Moving forward, the global risks require close monitoring, including further FFR hikes and the Fed’s plan to shed its large balance sheet as well as geopolitical tensions in various regions of the world.

Bank Indonesia predicts 2017 domestic economic growth in the 5.0-5.4% range, supported by accelerating exports and investment performance as well as resilient household consumption.

Indonesia’s balance of payments (BOP) is set to record another surplus in Q2/2017, supported by a capital and financial account surplus. Furthermore, the current account deficit is expected to remain under control at a healthy level. 

Looking forward, foreign capital inflows, both in FDI and portfolio investment, are expected to continue along with government structural reform and investor confidence in the national economic outlook. Nevertheless, Bank Indonesia shall continue to stabilise rupiah exchange rates in line with the currency’s fundamental value, while maintaining market mechanisms.

Moving forward, Bank Indonesia will control inflation within the target corridor for 2017, namely 4±1%. To that end, policy coordination to control inflation between the central government, regional administrations and Bank Indonesia must be strengthened to handle soaring volatile food prices during the holy fasting month and Eid-ul-Fitr.


Thursday June 15 2017
Indonesia Trade Surplus Widens 27% YoY In May
Statistics of Indonesia lChusnul Ch Manan | chusnul@tradingeconomics.com

Indonesia posted a trade surplus of 0.47 USD billion in May of 2017, compared to a 0.37 USD billion surplus a year earlier and below market estimates of a 1.09 USD billion surplus. Considering January to May 2017, the goods surplus was recorded 5.90 USD billion, exports rose by 19.93 percent compared to the same period a year earlier to 68.26 USD billion while imports increased 15.71 percent to 62.37 USD billion.

Year-on-year exports increased 24.08 percent from a year earlier to 14.29 USD billion in May of 2017, compared to an upwardly revised 12.71 percent rise in April and faster than market estimates of a 15.32 percent growth. It was the eighth straight month of increase, as sales of non-oil and gas products rose 23.34 percent to 13.02 USD billion while those of oil and gas rose by 32.31 percent to 1.27 USD billion.
 
Imports to Indonesia increased 24.03 percent from a year earlier to 13.82 USD billion in May of 2017, following an upwardly revised 10.46 percent growth in a month earlier while markets expected a 9.9 percent gain. It was the eighth consecutive month of increases as purchases of oil and gas rose 9.10 percent to 1.82 USD billion while those of non-oil and gas jumped 26.65 percent to 12 USD billion.
 
Compared to the previous month, exports increased 7.62 percent, as non-oil and gas products went up by 6.37 percent while sales oil exports rose by 22.36 percent. By categories, outbound shipments rose for: vehicles and parts thereof (16.19 percent); machinery/mechanical equipment (43.81 percent); knit goods (26.60 percent); machinery and electrical equipment (12.04 percent), and iron and steel 43.39 percent). In contrast sales decreased for : rubber and rubber goods (-4.28 percent); mineral fuels (-6.47 percent), ore, crust, and metal ash (-17.70); jewelry/gems (-18.82 percent), and ship (-83.69 percent). Sales went up to the ASEAN countries (10.48 percent), the EU countries (2.18 percent), Japan (16.75 percent), the USA ( 12 percent), India (7.61 percent), Australia (21.02 percent), and Taiwan (7.65 percent). In contrast, sales fell to China (-3.85 percent) and South Korea (-4.34 percent).
 
Compared to the prior month, inbound shipments increased by 15.67 percent. While purchases of non-oil and gas rose 16.49 percent, those of oil and gas went up by 10.54 percent. Imports went up the most for raw material (17.39 percent to 10.54 USD billion), followed by capital goods (7.19 percent to 2 USD billion), and consumption goods (16 percent to 1.28 USD billion).
 
In April 2017, trade surplus was upwardly revised to 1.33 USD billion.