Indonesia: Exports continue to grow at double-digit pace in September
October 29, 2010
In September, exports increased 21.1% over the same month last year to reach USD 12.3 billion. The figure represents a deceleration compared to the 29.4% expansion registered in August and in fact, marks the slowest growth rate since exports started recovering again 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 exports of non-oil and gas, which account for more than three quarters of total exports (August: +31.7% year-on-year; September: +21.3% yoy). Exports of oil and natural gas, in contrast, accelerated slightly (August: +18.9% year-on-year; September: +20.4% yoy). Meanwhile, imports moderated even more markedly, from a 41.4% expansion in August to a 24.4% increase in September. As a result, the trade surplus increased from USD 2.1 billion in August to USD 3.3 billion in September. 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 August, the 3-month sum of exports reached USD 39.7 billion, which surpassed the peak of USD 38.7 billion recorded in July 2008 and marks a new historic maximum.