Indonesia: Exports and imports fell most in three years
October 1, 2012
In August, exports contracted a whopping 24.3% over the same month last year, which followed the 7.6% decline observed in July (previously reported: -7.3% year-on-year) and exceeded the 12.6% decrease expected by the market. In fact, exports declined at the fastest pace since June 2009. Non-oil and gas exports, which account for the majority of Indonesian shipments, fell 22.6% in August (July: -3.3% yoy). Meanwhile, oil and gas exports fell 30.3% in August (July: -23.2% yoy). Moreover, imports fell for the first time since November 2009 and contracted 8.0%, which contrasted the 0.9% rise recorded in July and market expectations of a 7.6% increase. As a result, the trade balance registered its first surplus in five months and reached USD 248 million, which was well below the USD 3.6 billion surplus registered in the same month last year and contrasted market expectations of a USD 60 million shortfall.