Indonesia: Exports contract again in May, but trade surplus widens on greater import loss
June 15, 2015
Exports contracted 15.2% in May over the same month last year, which followed the 8.3% decline observed in April. May’s result marked the eighth consecutive loss. Non-oil and gas exports, which account for the majority of Indonesian shipments, dropped 10.1% in May (April: 0.0% year-on-year). Similarly, oil and gas exports contracted a staggering 42.3% (April: -45.0% yoy). Meanwhile, imports fell 21.4% in May, which followed the 22.3% contraction in April.
The trade balance widened from a USD 477 million surplus in April to a USD 955 million surplus in May. This result was significantly larger than the USD 53 million surplus recorded in the same month of 2014 and more than doubled the USD 410 million surplus the market had expected. Meanwhile, the 12-month moving sum of the trade balance jumped from a USD 1.8 billion surplus in April to a USD 2.7 billion surplus in May.
Author: Carl Kelly, Economist