Indonesia Posts Largest Trade Gap on Record


Indonesia’s trade deficit widened to USD 2.50 billion in April 2019 from a USD 1.67 billion gap in the same month a year earlier and compared to a market consensus of a USD 0.5 billion gap. It was the largest trade gap on record, as exports tumbled 13.1 percent year-on-year while imports fell at a softer 6.58 percent.

Exports from Indonesia slumped 13.10 percent from a year earlier to USD 12.60 billion in April 2019, worse than an expected 7.15 percent fall and after a downwardlly revised 9.4 percent decrease in the prior month. It was the sixth straight month of decrease in exports, as sales of non-oil and gas products dropped by 10.98 percent to USD 11.86 billion and those of oil and gas plunged by 37.06 percent to USD 0.74 billion.

Compared to the previous month, exports dropped 10.80 percent, as sales non-oil and gas products declined 8.68 percent while those oil and gas slumped by 34.95 percent. By categories, outbound shipments fell for mineral fuel (-6.37 percent); animal/nabat fats and oils (-19.11 percent); electric machinery/equipment (-18.25 percent); iron and steel (-14.05 percent), and jewelery (-54.28 percent). By contrast, sales rose for footwear (8.66 percent); rubber and rubber goods (15.10 percent); various chemical products (6.64 percent); pulp (21.39 percent), and fertilizer (66.36 percent).
 
Sales decreased to: Japan (-10.84 percent); the US (-0.01 percent); Thailand (-2.09 percent); Germany (-3.15 percent); India (-12.83 percent); Taiwan (-2.34 percent); South Korea (-18.89 percent); the Netherlands (-8.75 percent), and Singapore (-34.73 percent). Meanwhile, outbound shipment increased to: China (3.22 percent); Australia (6.14 percent); Italy (20.73 percent), and Malaysia (3.15 percent). 

Imports declined by 6.58 percent from a year earlier to USD 15.10 billion in March, following an upwardlly revised 7 percent drop in the prior month and compared to market expectations of a 12.1 percent fall. It marked the fourth straight month of yearly drop in inbound shipments, amid efforts from the government to reduce purchases and help manage the country's current account deficit. Purchases of oil and gas declined by 3.99 percent to USD 2.24 billion while those of non-oil and gas fell 7.02 percent to USD 12.86 billion. 
 
Compared to the prior month, imports surged by 12.25 percent, with purchases of non-oil and gas rose 7.82 percent while those of oil and gas jumped by 46.99 percent. Imports went up for all categories: raw material (12.09 percent); consumption goods (24.12 percent); and capital goods (6.78 percent). Among major trading partners, imports decreased from: the US (-0.89 percent); India (-3.55 percent); Thailand (-10.41 percent), and Singapore (-0.40 percent). Meantime, imports increased from China (22.91 percent); Japan (2.46 percent); South Korea (4.62 percent); Taiwan (9.50 percent); Germany (5.61 percent); Malaysia (3.05 percent); the Netherlands (34.79 percent); Australia (29.91 percent), and Italy (23.25 percent).
 
Considering the first four months of the year, the trade balance recorded a deficit of USD 2.56 billion, compared with a deficit of USD 1.41 billion in the same period of 2018.
 
 

Indonesia Posts Largest Trade Gap on  Record


Statistics Indonesia l Chusnul Ch Manan | chusnul@tradingeconomics.com
5/15/2019 8:17:10 AM