Indonesia Posts Largest Trade Gap in Near 5-1/2 Years
Indonesia posted a trade deficit USD 2.05 billion in November 2018, swinging from a USD 0.2 billion surplus in the same month a year earlier, beating market consensus of a USD 0.83 billion gap. It was the second straight month trade gap and the largest since July 2013, as exports dropped while imports increased.
12/17/2018 7:42:14 AM
Imports rose 11.68 percent from a year earlier to USD 16.88 billion in November, following an upwardlly revised 24 percent rise in the prior month and above expectations of a 10.5 percent increase. Purchases of non-oil and gas went up 8.79 percent to USD 14.04 billion while those of oil and gas surged by 28.62 percent to USD 2.84 billion.
Compared to the prior month, imports dropped by 4.47 percent, with purchases of non-oil and gas decreased 4.80 percent while those of oil and gas declined by 2.80 percent. Imports went down for all categories: raw material (-4.14 percent); capital goods (-5.92 percent), and consumption goods (-4.70 percent). Among major trading partners, imports decreased from: Japan (-12.78 percent); Taiwan (-10.06 percent); South Korea (-4.72 percent); Singapore (-10.05 percent); Thailand (-12.72 percent); Germany(-5.66 percent); the Netherlands (-54.54 percent), and India (-19.14 percent). On the other hand, imports increased to China (1.70 percent); the US (0.52 percent); Malaysia (4.69 percent); Australia (3.66 percent), and Italy (25.76 percent).
Exports unexpectedly fell 3.28 percent from a year earlier to USD 14.83 billion, missing market consensus of a 3.95 percent rise and after an upwardly revised 4.21 percent growth in the prior month. Sales of non-oil and gas products dropped by 4.12 percent to USD 13.46 billion while those of oil and gas rose by 5.84 percent to USD 1.37 billion.
Compared to the previous month, exports declined 6.69 percent, as non-oil and gas products went down by 6.25 percent and sales oil and gas decreased by 10.75 percent. By categories, outbound shipments fell for: animal/vegetables oils and fats (-9.83 percent); jewelry (-52.48 percent); mineral fuel (-5.91 percent); pulp (-33.41 percent); electric machinery/equipment (-7.63 percent).By contrast, sales increased for: footwear (2.38 percent); organic chemicals (2.33 percent); nickel (15.17 percent); ore, metal crust and metal ash (80.23 percent); and iron and steel (18.96 percent). Sales fell to: China (-7.10 percent); the US (-5.04 percent); Taiwan (-6.88 percent); Singapore (-16.75 percent); Australia (-16.03 percent); Malaysia (-6.44 percent); India (-14.65 percent); Thailand (-2.22 percent); Italy (-38.32 percent), and the Netherlands (-10.28 percent). Meanwhile, sales increased to Japan (6.10 percent); South Korea (5.28 percent), and Germany (1.58 percent).
Considering January to November, the trade balance recorded a deficit of USD 7.52 billion, compared with a surplus of USD 12.08 billion in the same period of 2017.