Indonesia Posts Largest Trade Deficit in 5 Years
Indonesia's trade deficit widened sharply to USD 2.03 billion in July 2018 from USD 0.3 billion in the same month a year earlier, and well above market consensus of a USD 0.6 billion gap. It was the largest trade deficit since July 2013, as imports jumped to a record high.
8/15/2018 3:36:11 PM
Imports surged 31.56 percent from a year earlier to an all-time high of USD 18.27 billion in July, following a marginally revised 12.77 percent rise in the prior month and far above expectations of a 14.1 percent increase. Purchases of non-oil and gas jumped 29.28 percent to USD 15.66 billion and those of oil and gas surged by 47.09 percent to USD 2.62 billion.
Compared to the prior month, imports rose sharply by 62.17 percent, whith purchases of non-oil and gas surging 71.54 percent and those of oil and gas increasing by 22.20 percent. Imports went up for all categories: raw material (59.28 percent); capital goods (71.95 percent), and consumption goods (70.50 percent). Among major trading partners, imports rose from: China (93.44 percent); Australia (53.94 percent); Taiwan (99.21 percent); South Korea (62.92 percent); Singapore (31.18 percent); Thailand (33.17 percent); Japan (75.79 percent); Malaysia (108.01 percent); India (47.15 percent); the US (67 percent); Germany (84.72 percent); Italy (92.23 percent); and the Netherlands (8.56 percent).
Exports increased at a softer 19.33 percent from a year earlier to USD 16.24 billion, beating market consensus of a 11.35 percent rise and after a downwardly revised 11.26 percent growth in the prior month. Sales of non-oil and gas products went up by 19.03 percent to USD 14.81 billion, while those of oil and gas jumped by 22.59 percent to USD 1.43 billion.
Compared to the previous month, exports surged 25.19 percent, as non-oil and gas products jumped by 31.18 percent while sales oil and gas slumped by 15.06 percent. By categories, outbound shipments increased for: electric machinery/equipment (37.23 percent); vehicles and parts (67.50 percent); rubber and rubber goods (51.47 percent); mineral fuel (11.90 percent); and animal/vegetable fats and oils (17.91 percent). In contrast, sales decreased for: air plane and parts (-58.05 percent); fertilizer (-23.92 percent); ore, metal crust and metal ash (-15.99 percent); ships (-58.97 percent); and wheat (-21.65 percent). Exports went up to: China (6.87 percent); Thailand (45.33 percent); Japan (29.46 percent); Taiwan (90.23 percent); Singapore (37.28 percent); Australia (44.10 percent); Malaysia (29.73 percent); South Korea (34.55 percent); India (34.20 percent); the US (37.96 percent); Germany (54.56 percent); the Netherlands (33.17 percent); and Italy (4.29 percent).
Considering January to July, the trade balance posted a deficit of USD 3.09 billion, compared with a surplus of USD 7.39 billion in the same period of 2017.