Indonesia: Exports slow but trade balance narrows in September
November 3, 2014
Exports increased 3.9% in September over the same month last year, which was down significantly from the 10.7% expansion observed in August. Non-oil and gas exports, which account for the majority of Indonesian shipments, slowed to a 2.9% increase in September (August: +14.7% year-on-year). In contrast, oil and gas exports rebounded to an 8.6% expansion (August: -4.5% yoy). Meanwhile, imports tumbled from a 13.7% expansion in August to a 0.2% increase in September.
The trade balance narrowed from a USD 312 million deficit in August to a USD 270 shortfall in September, which was also much smaller than the USD 803 million deficit recorded in the same month last year. However, the reading was slightly better than the USD 290 million deficit the market had expected. Meanwhile, the 12-month moving sum of the trade balance posted a surplus of USD 0.7 billion in September, which was above the USD 0.1 billion surplus observed in August.
Author: Carl Kelly, Economist