Indonesia: Exports decline in November, trade balance swings to deficit
January 2, 2015
Exports contracted 14.6% in November over the same month of the previous year, which followed the 2.2% decline observed in October and marked the weakest result in more than two years. Non-oil and gas exports, which account for the majority of Indonesian shipments, dropped 12.6% in November (October: -0.8% year-on-year). Similarly, oil and gas exports contracted 23.9% (October: -9.1% yoy). Meanwhile, imports fell from a 2.2% decline in October to a greater 7.3% contraction in November.
The trade balance swung from a modest USD 21 million surplus in October to a USD 426 million deficit in November, which significantly contrasted the USD 789 million surplus recorded in the same month of the previous year. The reading was greater than the USD 122 million deficit the market had expected. Meanwhile, the 12-month moving sum of the trade balance swung from a USD 0.7 billion surplus in October to a 0.6 billion deficit in November.
Author: Carl Kelly, Economist