Indonesia: Exports continue to grow at double-digit pace in October
November 30, 2010
In October, exports increased 16.3% over the same month last year to reach USD 13.7 billion. The figure represents a deceleration compared to the 21.1% expansion registered in September. In fact, it marks the slowest growth rate seen since exports began recovering in December 2009. In part, the slower growth reflects a higher comparison base but the appreciating rupiah is also playing a part. The deceleration reflected slower growth in non-oil and gas exports (September: +21.3% year-on-year; October: +17.4% yoy), which account for more than three quarters of Indonesian exports. Exports of oil and natural gas also decelerated notably (September: +20.4% year-on-year; October: +11.1% yoy). On the other hand, imports moderated only slightly, rising 24.1% in October following growth of 24.4% in September. As a result, the trade surplus decreased from USD 3.3 billion in September to USD 2.4 billion in October. Owing to the strong export recovery observed this year, Indonesia's external sector has successfully exited the slump that began towards the end of 2008. In October, the 3-month sum of exports reached USD 40.1 billion, which surpassed the peak of USD 38.7 billion recorded in July 2008 and marks a new historic high.