Tuesday October 15 2019
Indonesia Trade Balance Swings to Deficit in September
Statistics Indonesia l Chusnul Ch Manan | chusnul@tradingeconomics.com

Indonesia unexpectedly posted a trade deficit of USD 0.16 billion in September 2019, swinging from a USD 0.35 billion surplus in the same month a year earlier and missing market consensus of a USD 0.10 billion surplus, as exports fell more than imports.

Exports from Indonesia dropped 5.74 percent from a year earlier to USD 14.10 billion in September 2019, better than market consensus of a 5.84 percent decline and after a 9.99 percent fall in the prior month. It was the eleventh straight month of decrease in exports, as sales of oil and gas plunged by 37.13 percent to USD 0.83 billion and those of non-oil and gas products dropped by 2.70 percent to USD 13.27 billion.
 
Compared to the previous month, exports dropped 1.29 percent, as sales oil and gas declined 5.17 percent and those of non-oil and gas products decreased 1.03 percent. By categories, outbound shipments decreased for vehicles and parts (-10.32 percent); rubber and rubber goods (-10.63 percent); electric machinery/equipment (-6.53 percent); apparel not knitted (-18.69 percent); and jewelery (-32.60 percent). By contrast, sales increased for ore, crust, and metal ash (193.08 percent); processed foods (72.56 percent); iron and steel products (19.15 percent); ships (453.10 percent), and animal/vegetable fats and oils (11.53 percent).
 
Sales fell to: Japan (-3.37 percent); the US (-7.09 percent); Malaysia (-5.10 percent); Thailand (-6.60 percent); Germany (-5.01 percent); Australia (-20.36 percent), and South Korea (-1.24 percent). Meanwhile, outbound shipment rose to China (6.01 percent); Italy (12.62 percent); India (6.42 percent); Taiwan (21.87 percent); Singapore (2 percent); and the Netherlands (12.24 percent).
 
Imports dropped 2.41 percent from a year earlier to USD 14.26 billion in September, after an upwardly revised 15.70 percent plunge in the prior month and missing market consensus of 4.2 percent drop. Purchases of oil and gas tumbled 30.50 percent from a year earlier to USD 1.59 billion while those of non-oil and gas increased 2.82 percent to USD 12.67 billion.
 
Compared to the prior month, imports rose 0.63 percent, with purchases of non-oil and gas went up 1.02 percent and those of oil and gas decreased by 2.36 percent. Imports declined for raw material (-0.70 percent). Conversely, imports rose for both capital goods (4.80 percent) and consumption goods (3.13 percent). Among major trading partners, imports shrank from: the US (-10.82 percent); Japan (-4.28 percent); Thailand (-2.30 percent); Italy (-35.87 percent); Taiwan (-6.84 percent); Singapore (-0.30 percent); the Netherlands (-10.88 percent); India (-3.43 percent); and Australia (-9.83 percent). Meantime, imports increased from China (3.82 percent); South Korea (13.03 percent); Malaysia (13.26 percent); and Germany (11.35 percent).   
 
Considering the first nine months of the year, the trade deficit narrowed sharply to USD 1.95 billion from USD 3.82 billion in the same period of 2018.
 





Thursday September 19 2019
Bank Indonesia Slashes Interest Rates for 3rd Month
Bank Indonesia | Joana Ferreira | joana.ferreira@tradingeconomics.com

Bank Indonesia reduced its 7-day reverse repo rate by 25bps to 5.25 percent during its September meeting, in an attempt to boost economic growth amid low inflation expectations. It was the third straight cut in three months, amid growing concerns about global growth due to continued trade tensions and a number of geopolitical risks. The overnight deposit and lending facilities were also trimmed by the same amount to 4.50 percent and 6.00 percent, respectively.

Excerpts from the Bank Indonesia press release:

Ongoing trade tensions between the United States and China, accompanied by geopolitical risks, continue to suppress the global economy and amplify global financial market uncertainty. The tit-for-tat imposition of higher import tariffs by the United States and China is stifling world trade volume and global economic growth. The US economy is moderating on declining exports and non-residential investment. In addition, economic growth in Europe, Japan, China and India continues to decelerate on weaker exports, which has fed through to lower domestic demand. The global economic slowdown has triggered lower international commodity prices, including oil, leading to mild inflationary pressures. In response, many countries have introduced fiscal stimuli and relaxed monetary policy. Meanwhile, high global financial market uncertainty has triggered a shift in global funds to safe haven assets, such as government bonds in the United States and Japan as well as gold, although capital inflows to developing economies have been maintained. Prevailing global economic dynamics demand vigilance due to the potential impact on efforts to stimulate economic growth and maintain foreign capital inflows to bolster external stability.

Indonesia's economy remains overshadowed by intense global headwinds. Exports have failed to regain momentum in line with weaker global demand and sliding commodity prices despite several manufacturing exports, such as motor vehicles, maintaining positive growth. Consequently, investment growth remains underwhelming, non-building investment in particular, while national strategic project development continues to prop up building investment. Private consumption has posted limited gains, although social aid program (bansos) disbursements by the government have helped to maintain stable household consumption growth. Moving forward, the policy mix implemented by Bank Indonesia and the Government is projected to maintain national economic growth momentum towards the lower half of the 5.0-5.4% range in 2019 before increasing towards the midpoint of the 5.1-5.5% targeted for 2020.

Low and stable inflation remains under control. CPI inflation in August 2019 was recorded at 0.12% (mtm), decreasing from 0.31% (mtm) the month earlier. Annually, headline inflation in August 2019 stood at 3.49% (yoy), up slightly from 3.32% (yoy) in the previous period. Inflation was supported by controlled core inflation in line with anchored inflation expectations due to policy consistency by Bank Indonesia to maintain price stability, manage aggregate demand and minimise the impact of global prices. Core inflation has been edged up over the past few months by rising international gold prices as well as the second-round effect of higher volatile food (VF) inflation. The latest developments, however, point to lower VF inflation in line with maintained foodstuff supply. Meanwhile, administered prices recorded deflation in the reporting period due to lower transport fares, airfares in particular due to implementation of the airlines’ low season strategy. Moving ahead, Bank Indonesia will consistently maintain price stability and strengthen policy coordination with the central and regional governments to control inflation. Therefore, Bank Indonesia projects inflation in 2019 below the midpoint of the 3.5%±1% target corridor and within the target range for 2020, namely 3.0%±1%.




Monday September 16 2019
Indonesia Trade Balance Swings to Surplus in August
Statistics Indonesia l Chusnul Ch Manan | chusnul@tradingeconomics.com

Indonesia posted a trade surplus USD 0.085 billion in August 2019, swinging from a SD 0.95 billion gap in the same month a year earlier but below market consensus of USD 0.19 billion surplus, as exports fell less than imports.

Exports from Indonesia dropped 9.99 percent from a year earlier to USD 14.28 billion in August 2019, worse than market consensus of a 6 percent decline and after a marginally revised 5.10 percent fall in the prior month. It was the ninth straight month of decrease in exports, as sales of oil and gas tumbled by 39.52 percent to USD 0.88 billion and those of non-oil and gas products dropped by 7.18 percent to USD 13.40 billion. 

Compared to the previous month, exports dropped 7.60 percent, as sales oil and gas plunged 45.48 percent and those of non-oil and gas products declined 3.20 percent. By categories, outbound shipments decreased for mineral fuel (-8.23 percent); rubber and rubber goods (-11.74 percent); electric machinery/equipment (-8.19 percent); footwear (-12.08 percent); and chemical products (-18.53 percent). By contrast, sales increased for jewelery (25.31 percent); tin (64.65 percent); iron and steel products (35.22 percent); inorganic chemicals (55.47 percent), and animal/vegetable fats and oils (1.17 percent).
 
Sales fell to: Japan (-3.29 percent); China (-0.45 percent); Italy (-6.68 percent); Malaysia (-9.71 percent); Thailand (-11.09 percent); Germany (-8.09 percent); India (-11.93 percent); Taiwan (-0.55 percent); the Netherlands (-28.26 percent); Australia (-20.62 percent), and South Korea (-10.25 percent). Meanwhile, outbound shipment rose to Singapore (20.84 percent); the US (0.48 percent).

Imports slumped 15.60 percent from a year earlier to USD 14.20 billion in August, after a marginally revised 15.19 percent plunge in the prior month and missing market consensus of 12.9 percent drop. Purchases of oil and gas tumbled 46.47 percent from a year earlier to USD 1.63 billion while those of non-oil and gas declined 8.77 percent to USD 12.56 billion. 

Compared to the prior month, imports fell 8.53 percent, with purchases of non-oil and gas dropped 8.76 percent and those of oil and gas went down by 6.73 percent. Imports declined for all categories: raw material (-8.17 percent); capital goods (-10.93 percent); and consumption goods (-6.71 percent). Among major trading partners, imports shrank from: China (-8.75 percent); the US (-6.09 percent); Japan (-2.85 percent); South Korea (-7.14 percent); Thailand (-3.86 percent); Italy (-48.20 percent); Malaysia (-17.52 percent); Taiwan (-6.37 percent); Germany (-29.90 percent); Singapore (-7.99 percent); and Australia (-2.53 percent). Meantime, imports increased from the Netherlands (54.33 percent); India (6.63 percent).

Considering the first eight months of the year, the trade balance recorded a deficit of USD 1.81 billion, compared with a deficit of USD 4.15 billion in the same period of 2018.
 





Thursday August 22 2019
Bank Indonesia Cuts Rates in Shock Move
Bank Indonesia | Joana Ferreira | joana.ferreira@tradingeconomics.com

Bank Indonesia reduced its 7-day reverse repo rate unexpectedly by 25bps to 5.50 percent during its August meeting, the second straight cut in two months, in an attempt to support growth amid low inflation expectations. Last month's rate cut was the first time since September 2017 amid growing concerns about global growth due to continued trade tensions and a number of geopolitical risks. The overnight deposit and lending facilities were also trimmed by the same amount to 4.75 percent and 6.25 percent, respectively.

Excerpts from the Bank Indonesia press release:

This policy is consistent with low inflation forecasts that are below the midpoint of the target, continues to attract investment returns on domestic financial assets so as to support external stability, as well as pre-emptive measuresto push forward economic growth momentum from the impact of the global economic slowdown. The monetary operations strategy will continue to be directed at ensuring adequate liquidity and improving money market efficiency so as to strengthen the transmission of accommodative monetary policy. Macroprudential policies remain accommodative to encourage bank lending and expand financing for the economy, including environmentally friendly financing. Payment system policies and financial market deepening are also continuously strengthened to support economic growth. Going forward, Bank Indonesia will continue to accommodate an accommodative policy mix in line with low inflation forecasts, maintained external stability, and the need to continue to drive economic growth momentum.

Continued tensions in trade relations and a number of geopolitical risks further depress trade volume and world economic growth.The US economy is slowing down due to falling exports and non-residential investment. Economic growth in Europe, Japan, China and India was also lower due to the decline in external sector performance and domestic demand. The weakening of the global economy continues to depress commodity prices, including oil prices. To respond to the impact of slowing economic growth, various countries implemented fiscal stimulus and eased monetary policy, including the US central bank which in July 2019 had lowered its policy rates. The uncertainty of global financial markets also continued and led to a shift in the placement of global funds to assets considered safe such as US and Japanese government bonds and gold commodities.

Inflation remains under control at a low and stable level. CPI inflation in July 2019 was recorded at 0.31% (mtm), down from the previous month inflation of 0.55% (mtm). On annual basis, inflation in July 2019 was recorded at 3.32% (yoy), a slight increase compared to inflation in the previous month of 3.28% (yoy). Controlled inflation is driven by maintained core inflation supported by good expectations in line with Bank Indonesia's policy consistency in maintaining price stability, managed aggregate demand, and the effect of minimal global prices. Administered prices groupre-noted deflation was affected by the continuing impact of the policy of lowering the upper limit of air freight rates, as well as the correction of intercity transport rates and railroad fares after the Eid holiday. Meanwhile, volatile food inflation slowed, although the price development of some horticultural commodities still needs attention. Bank Indonesia remains consistent in maintaining price stability and strengthening policy coordination with the Government, both at the central and regional levels, to ensure inflation remains low and stable amidst the challenges of weather disturbances due to drought which is expected to have an impact on food supply. 2019 inflation is predicted to be below the midpoint of the target range of 3.5 ± 1% and maintained within the target range of 3.0 ± 1% by 2020.


Thursday August 15 2019
Indonesia Trade Gap Narrows Sharply in July
Statistics Indonesia l Chusnul Ch Manan| chusnul@tradingeconomics.com

Indonesia’s trade deficit narrowed sharply to USD 0.06 billion in July 2019 from a USD 2 billion in the same month a year earlier and below market consensus of USD 0.42 billion, as exports fell less than imports.

Exports from Indonesia dropped 5.12 percent from a year earlier to USD 15.45 billion in July 2019, better than market consensus of an 11.4 percent decline and after an upwardly revised 9.11 percent fall in the prior month. It was the ninth straight month of decrease in exports, as sales of non-oil and gas products dropped by 6.88 percent to USD 13.85 billion and those of oil and gas jumped by 13.35 percent to USD 1.61 billion.
 
Compared to the previous month, exports surged 31.02 percent, as sales non-oil and gas products jumped 25.33 percent and those oil and gas soared by 115.19 percent. By categories, outbound shipments increased for mineral fuel (10.92 percent); rubber and rubber goods (40.54 percent); electric machinery/equipment (35.19 percent); vehicles and parts (58.75 percent); and apparel not knitted (67.25 percent). By contrast, sales declined for ships (-76.28 percent); jewelery (-14.86 percent); tin (-54.60 percent); nickel (-3.45 percent); inorganic chemicals (-21.71 percent).
 
Sales rose to: Japan (18.87 percent); the US (47.08 percent); China (25.92 percent); Italy (9.81 percent); Malaysia (10.83 percent); Thailand (45.58 percent); Germany (43.54 percent); India (40.97 percent); Taiwan (31.37 percent); the Netherlands (25.43 percent); Australia (29.24 percent), and South Korea (14.48 percent). Meanwhile, outbound shipment fell to Singapore (-9.42 percent). 

Imports tumbled 15.21 percent from a year earlier to USD 15.51 billion in July, reversing a downwardly revised 2.0 percent rise in the prior month and missing market consensus of 18.12 percent drop. Purchases of non-oil and gas declined 11.96 percent to USD 13.77 billion while those of oil and gas plunged 34.29 percent from a year earlier to USD 1.75 billion.
 
Compared to the prior month, imports surged 34.96 percent, with purchases of non-oil and gas jumped 40.72 percent and those of oil and gas increased by 2.04 percent. Imports rose for all categories: raw material (29.01 percent); capital goods (60.73 percent); and consumption goods (42.15 percent). Among major trading partners, imports grew from: China (57.68 percent); the US (20.84 percent); Japan (21.08 percent); South Korea (28.55 percent); India (31.93 percent); Thailand (25.60 percent); Italy (247.64 percent); Malaysia (71.07 percent); Taiwan (29.17 percent); Germany (77.17 percent); and Singapore (28.95 percent). Meantime, imports dropped from Australia (-7.0 percent); the Netherlands (-7.82 percent).

Considering the first seven months of the year, the trade balance recorded a deficit of USD 1.90 billion, compared with a deficit of USD 3.21 billion in the same period of 2018.
 
 



Monday August 05 2019
Indonesia GDP Annual Growth Slows to 2-Year Low
Statistics Indonesia | Chusnul Ch Manan | chusnul@tradingeconomics.com

Indonesia's annual economic growth eased slightly to 5.05 percent in the second quarter of 2019 from 5.07 percent in the previous three-month period and matching market consensus. That was the weakest pace of expansion since the second quarter of 2017, as investment growth remained the slowest since early 2017.

On the expenditure side, fixed-investment went up 5.01 percent in the second quarter, slowing from 5.03 percent in the March quarter. Meanwhile, household consumption rose 5.17 percent, after a 5.02 percent increase in the previous period; and government spending climbed 8.23 percent, compared with a 5.21 percent advance in the previous period.
 
Net external demand contributed positively to the GDP growth as exports fell 1.81 percent (vs -1.86 percent in Q1) and imports tumbled at a faster 6.73 percent (vs -7.36 percent in Q1).
 
On the production side, output growth slowed for: manufacturing (3.54 percent vs 3.86 percent); electricity and gas (2.20 percent vs 4.12 percent); accommodation & food services (5.52 percent vs 5.87 percent); construction (5.69 percent vs 5.91 percent); wholesale and retail trade (4.63 percent vs 5.27 percent); business services (9.94 percent vs 10.36 percent); financial and insurance services (4.55 percent vs 7.32 percent); and water and waste management (8.35 percent vs 8.95 percent). In addition, mining and quarrying output shrank 0.71 percent, compared to 2.32 percent expansion in the previous period.
 
Meantime, GDP expanded faster for: agriculture (5.33 percent vs 1.82 percent); transportation & storage (5.78 percent vs 5.25 percent); public administration, defense and social security (8.82 percent vs 6.40 percent); real estate (5.74 percent vs 5.46 percent); information and communication (9.60 percent vs 9.06 percent); education (6.29 percent vs 5.60 percent); health and social services (9.09 percent vs 8.59 percent); and other services (10.73 percent vs 9.99 percent);

Considering the first half of the year, the economy expanded 5.06 percent from a year earlier.
 
For 2019, the government is targeting economic growth at 5.2-5.3 percent, while the central bank has forecast 5.2 percent.




Monday August 05 2019
Indonesia Economy Grows 4.2% QoQ in Q2
Statistics Indonesia | Rida Husna | rida@tradingeconomics.com

Indonesia's gross domestic product expanded 4.2 percent quarter-on-quarter in the three months to June 2019, rebounding sharply from a 0.52 percent contraction in the previous period and matching market expectations. This was the first quarterly growth in three quarters and the strongest in a year, as private consumption and fixed investment rose sharply on the back of fasting month of Ramadan and Eid-ul Fitr celebration.

On the expenditure side, private consumption grew sharply (1.73 percent vs 0.05 percent in Q1) and rebounds were seen in fixed investment (0.94 percent vs -5.74 percent) and government spending (36.28 percent vs -45.78 percent). Meantime, net external demand contributed negatively to the GDP, amid a recovery in imports (1.16 percent vs -16.99 percent) and a further drop in exports (-0.79 percent vs -6.84 percent).
On the production side, output growth was mainly supported by: electricity and gas (1.19 percent vs -3.70 percent); construction (0.75 percent vs -4.30 percent); transportation and storage (3.66 percent vs -0.56 percent); public administration (3.76 percent vs -9.54 percent); education (3.90 percent vs -10.80 percent); healthcare services and social activities (2.01 percent vs -1.28 percent); manufacturing (1.75 percent vs 0.37 percent); wholesale and retail trade (2.50 percent vs 1.27 percent); accommodation and food service (1.55 percent vs 0.68 percent); business services (2.98 percent vs 2.44 percent); and other services (4.0 percent vs 2.21 percent). Meanwhile, GDP growth advanced at a slower rate for: agriculture, forestry and fishing (13.80 percent vs 14.11 percent); information and communication (2.43 percent vs 2.80 percent); and real estate (1.19 percent vs 2.49 percent). At the same time, there was a contraction in mining and quarrying (-0.61 percent vs -0.24 percent) and financial services and insurance (-1.81 percent vs 3.32 percent).
Year-on-year, the economy advanced 5.05 percent in the second quarter, the weakest in two years. following a 5.07 percent growth in the first quarter and also in line with estimates.




Thursday July 18 2019
Indonesia Cuts Rates for 1st Time in Almost 2 Years
Bank Indonesia | Joana Ferreira | joana.ferreira@tradingeconomics.com

Bank Indonesia lowered its 7-day reverse repo rate by 25bps to 5.75 percent during its July meeting, the first interest rate cut since September 2017, in an attempt to support growth amid low inflation expectations. The overnight deposit and lending facilities were also trimmed by the same amount to 5.00 percent and 6.50 percent, respectively.

Excerpts from the Bank Indonesia press release:

Bank Indonesia is maintaining an accommodative macroprudential policy stance to encourage bank lending and expand economic financing. In addition, Bank Indonesia constantly strengthens payment system policy and financial market deepening to support economic growth. Moving forward, Bank Indonesia perceives adequate space for accommodative monetary policy in line with low inflation expectations and the need to further stimulate economic growth.

Ongoing trade tensions continue to pressure world trade volume and undermine global economic growth. Flatter growth is predicted in the United States as exports decline due to simmering trade tensions, the fading effect of fiscal stimuli and restrained economic confidence. Growth has also slowed in Europe as a result of sluggish exports coupled with the ongoing structural issue of an aging population, which is undermining domestic demand. Declining exports and weaker domestic demand are also plaguing the economies of China and India. Global economic moderation, in turn, has amplified downside pressures on commodity prices, including oil. Several central banks in advanced and developing economies have responded to the inauspicious economic dynamics by relaxing monetary policy, including the US Federal Reserve, which is expected to lower the federal funds rate (FFR).

At home, Indonesia has maintained relatively stable economic growth in the second quarter of 2019 compared with conditions in the previous period. Private consumption remains solid, backed by maintained consumer confidence. Furthermore, building investment continues to expand at a stable pace. Meanwhile, exports from Indonesia are expected to contract on subdued global demand and lower commodity prices stemming from the ongoing trade dispute, although steel exports increased in June 2019. The impact of simmering trade tensions on lower exports has been felt in a number of countries. In Indonesia, the export contraction has impeded imports and undermined nonbuilding investment. Moving forward, efforts to stimulate domestic demand, including investment, are required in order to mitigate the adverse impact of global economic moderation. In general, Bank Indonesia projects national economic growth in Indonesia below the midpoint of the 5.0-5.4% range in 2019. In addition, Bank Indonesia will institute a policy mix in cooperation with the Government and other relevant authorities in order to build economic growth momentum.

Low and stable inflation was maintained in June 2019. Consumer Price Index (CPI) inflation stood at 0.55% (mtm) or 3.28% (yoy) in June 2019, down slightly on the previous period at 0.68% (mtm) or 3.32% (yoy). Furthermore, core inflation was also kept under control in line with policy consistency by Bank Indonesia to anchor rational inflation expectations, including maintaining rupiah exchange rates in line with the currency's fundamental value. Administered prices (AP) recorded deflation in the reporting period as airfares were readjusted after the peak festive period. Inflationary pressures on volatile foods were controlled as the seasonal impact of Ramadan and Eid-ul-Fitr began to fade. Bank Indonesia constantly strengthens policy coordination with the central and local governments to ensure low and stable inflation, including in anticipation of an earlier and protracted dry season forecasted this year. Bank Indonesia projects inflation in 2019 below the midpoint of the target corridor, namely 3.5%±1%.


Monday July 15 2019
Indonesia Trade Surplus Smaller than Estimated
Statistics Indonesia l Chusnul Ch Manan | chusnul@tradingeconomics.com

Indonesia’s trade surplus narrowed sharply to USD 0.20 billion in June 2019 from a USD 1.71 billion in the same month a year earlier and below market consensus of USD 0.69 billion, as exports fell while imports rose.

Exports from Indonesia dropped 8.98 percent from a year earlier to USD 11.78 billion in June 2019, worse than market consensus of a 8.7 percent decline and after a downwardly revised 8.48 percent slide in the prior month. It was the eighth straight month of decrease in exports, as sales of non-oil and gas products fell by 2.31 percent to USD 11.03 billion and those of oil and gas plunged by 54.69 percent to USD 0.75 billion.
 
Compared to the previous month, exports tumbled 20.54 percent, as sales non-oil and gas products dropped 19.39 percent and those oil and gas plunged by 34.36 percent. By categories, outbound shipments decreased for mineral fuel (-16.31 percent); animal/nabat fats and oils (-11.77 percent); electric machinery/equipment (-20.17 percent); vehicles and parts (-26.85 percent); machinery/air craft mechanics (-29.80 percent). By contrast, sales increased for ships (956.78 percent); jewelery (88.66 percent); tin (3.28 percent); fertilizer (9.63 percent); sugar and confectionary (9.98 percent).
 
Sales declined to: Japan (-14.63 percent); the US (-34.20 percent); China (-19.88 percent); Italy (-42.66 percent); Malaysia (-13.02 percent); Thailand (-26.30 percent); Germany (-27.42 percent); India (-31.77 percent); Taiwan (-28.15 percent); the Netherlands (-23.37 percent), and South Korea (-5.25 percent). Meanwhile, outbound shipment rose to Singapore (11.61 percent); Australia (2.23 percent).
 
Imports increased 2.80 percent from a year earlier to USD 11.58 billion in June, reversing a downwardly revised 17.30 percent plunge in the prior month. It marked the first yearly increase in inbound shipments amid efforts from the government to reduce purchases and help manage the country's current account deficit. Purchases of non-oil and gas rose 8.15 percent to USD 9.87 billion while those of oil and gas contracted 19.99 percent from a year earlier to USD 1.71 billion.
 
Compared to the prior month, imports tumbled 20.70 percent, with purchases of non-oil and gas decreased 20.55 percent and those of oil and gas dropped by 21.50 percent. Imports went down for all categories: raw material (-17.78 percent); capital goods (-25.53 percent); and consumption goods (-33.57 percent). Among major trading partners, imports shrank from: China (-28.63 percent); the US (-7.65 percent); South Korea (-20.81 percent); India (-33.25 percent); Thailand (-9.61 percent); Italy (-31.58 percent); Malaysia (-37.10 percent); Taiwan (-21.45 percent); Germany (-26.97 percent); and the Netherlands (-20.82 percent).  Meantime, imports increased from Japan (7.38 percent); Australia (17.76 percent); and Singapore (4.87 percent).

Considering the first half of the year, the trade balance recorded a deficit of USD 1.93 billion, compared with a deficit of USD 1.20 billion in the same period of 2018.
 
 
 
 
 



Monday June 24 2019
Indonesia Unexpectedly Posts Trade Surplus in May
Statistics Indonesia l Chusnul Ch Manan | chusnul@tradingeconomics.com

Indonesia unexpectedly posted a trade surplus USD 0.21 billion in May 2019, swinging from USD 1.45 billion gap in the same month a year earlier and against market consensus of an USD 1.38 billion gap, as exports fell less than imports.

Exports from Indonesia dropped 8.99 percent from a year earlier to USD 14.74 billion in May 2019, better than market consensus of a 14.7 percent decline and after a downwardly revised 9.54 percent slide in the prior month. It was the seventh straight month of decrease in exports, as sales of non-oil and gas products fell by 6.44 percent to USD 13.63 billion and those of oil and gas plunged by 31.77 percent to USD 1.11 billion.

Compared to the previous month, exports jumped 12.42 percent, as sales non-oil and gas products rose 10.16 percent while those oil and gas surged by 50.19 percent. By categories, outbound shipments increased for mineral fuel (5.81 percent); animal/nabat fats and oils (14.97 percent); electric machinery/equipment (14.17 percent); vehicles and parts (16.17 percent), and jewelery (45.33 percent). By contrast, sales declined for ships (-68.08 percent); ore, crust and metal ash (-49.05 percent); various chemical products (-7.84 percent); pulp (-14.12 percent), and locomotive and train equipment (-74.29 percent).

Sales increased to: Japan (12.56 percent); the US (12.32 percent); China (7.27 percent); Australia (17.26 percent); Italy (33.51 percent); Malaysia (10.57 percent); Thailand (6.39 percent); Germany (5.95 percent); India (11.06 percent); Taiwan (10.07 percent); the Netherlands (12.79 percent), and Singapore (15.18 percent). Meanwhile, outbound shipment fell to South Korea (-0.32 percent).  

Imports tumbled by 17.71 percent from a year earlier to USD 14.53 billion in May, following a downwardly revised 4.72 percent decline in the prior month. It marked the fifth straight month of yearly drop in inbound shipments near the end of the Muslim fasting month, and amid efforts from the government to reduce purchases and help manage the country's current account deficit. Purchases of oil and gas tumbled by 26.89 percent to USD 2.09 billion while those of non-oil and gas declined 15.94 percent to USD 12.44 billion.

Compared to the prior month, imports went down by 5.62 percent, with purchases of non-oil and gas decreased 5.48 percent while those of oil and gas dropped by 6.41 percent. Imports went down for both raw material (-7.82 percent) and capital goods (-1.76 percent); while consumption goods rose (5.62 percent). Among major trading partners, imports decreased from: China (-8.15 percent); Japan (-17.58 percent); South Korea (-9 percent); India (-14.49 percent); Thailand (-6.44 percent); Australia (-9 percent); Italy (-2.64 percent); Singapore (-3.44 percent), and Malaysia (-0.19 percent). Meantime, imports increased from the US (1.85 percent); Taiwan (0.33 percent); Germany (4.48 percent); and the Netherlands (4.12 percent).

Considering the first five months of the year, the trade balance recorded a deficit of USD 2.14 billion, compared with a deficit of USD 2.87 billion in the same period of 2018.