Indonesia Unexpectedly Posts Trade Surplus in May

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.
Statistics Indonesia l Chusnul Ch Manan | 6/24/2019 10:34:59 AM
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.

Indonesia Unexpectedly Posts Trade Surplus in May