Indonesia Trade Balance Swings to Deficit in August
Indonesia posted a trade deficit USD 1.02 billion in August 2018, swinging from a USD 1.68 billion surplus in the same month a year earlier, compared to market consensus of a USD 0.68 billion gap. It was the second straight month trade gap, mainly due to a surge in imports.
9/17/2018 8:28:16 AM
Imports surged 24.65 percent from a year earlier to USD 16.84 billion in August, following a marginally revised 31.73 percent rise in the prior month and below expectations of a 26.53 percent increase. Purchases of non-oil and gas rose 19.97 percent to USD 13.79 billion while those of oil and gas surged by 51.43 percent to USD 3.05 billion.
Compared to the prior month, imports tumbled by 7.97 percent, with purchases of non-oil and gas slumping 11.79 percent while those of oil and gas increasing by 14.50 percent. Imports went down for all categories: raw material (-7.60 percent); capital goods (-8.98 percent), and consumption goods (-9.19 percent). Among major trading partners, imports declined from: China (-7.39 percent); the US (-23.58 percent); Japan (-15.94 percent); Taiwan (-16.39 percent); South Korea (-15.27 percent); Singapore (-10.34 percent); Thailand (-5.89 percent); Malaysia (-18.61 percent); Germany (-16.80 percent); Italy (-32.50 percent); and the Netherlands (-49.40 percent). By contrast, imports rose to Australia (2.61 percent), and India (4.69 percent).
Exports increased at a softer 4.15 percent from a year earlier to USD 15.82 billion, far below market consensus of a 10.03 percent rise and after a marginally revised 19.68 percent growth in the prior month. Sales of non-oil and gas products went up by 3.43 percent to USD 14.43 billion while those of oil and gas increased by 12.24 percent to USD 1.38 billion.
Compared to the previous month, exports fell 2.90 percent, as non-oil and gas products dropped by 2.86 percent and sales oil and gas declined by 3.27 percent. By categories, outbound shipments decreased for: rubber and rubber goods (-776 percent); mineral fuel (-16.25 percent); various chemical products (-7.53 percent); ore, metal crust and metal ash (-11.71 percent); and paper/carton (-9.23 percent). In contrast, sales went up for: electric machinery and equipment (3.47 percent); animal fats and oils (3.47 percent); iron and steel (6.20 percent); tin (20.94 percent), and knitted goods (5.59 percent). Sales went down to: China (-3.81 percent); Japan (-6.82 percent); South Korea (-10.29 percent); India (-0.61 percent); Thailand (-10.24 percent); Taiwan (-6 percent); Singapore (-9.42 percent); and Italy (-5.76 percent). By contrast, sales rose to the US (2.36 percent); Australia (3.73 percent); Malaysia (7.33 percent); Germany (4.02 percent), and the Netherlands (6.65 percent).
Considering January to August, the trade balance posted a deficit of USD 4.09 billion, compared with a surplus of USD 9.07 billion in the same period of 2017.