Indonesia Trade Surplus Smaller than Estimated
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.
7/15/2019 7:20:12 AM
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.