Indonesia: Exports decline in October, but trade balance returns to surplus
December 1, 2014
Exports contracted 2.2% in October over the same month last year, which contrasted the 3.9% expansion observed in September and marked the weakest result in three months. Non-oil and gas exports, which account for the majority of Indonesian shipments, dropped to a 0.8% decrease in October (September: +2.9% year-on-year). Similarly, oil and gas exports tumbled to a 9.1% contraction (September: +8.6% yoy). Meanwhile, imports swung from 0.2% increase in September to a 2.2% decline in October.
The trade balance jumped from a USD 270 million shortfall in September to a modest USD 23 million surplus in October, which was broadly in line with the USD 24 million deficit recorded in the same month last year. The reading contrasted the USD 60 million deficit the market had expected. Meanwhile, the 12-month moving sum of the trade balance held at a USD 0.7 billion surplus in October.
Author: Carl Kelly, Economist