Indonesia Trade Gap Narrows Sharply in July
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.
8/15/2019 6:04:49 AM
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.