Indonesia: Indonesia posts its first annual trade deficit in 2012
February 1, 2013
In December, exports fell for the ninth consecutive month and contracted 9.8% over the same month the year before. The drop followed the 5.3% decrease observed in November and was larger than the 2.0% decline expected by the market. As a result, in the full year 2012, exports fell 6.6% over the previous year (2011: +29.0% year-on-year).
Non-oil and gas exports, which account for the majority of Indonesian shipments, fell 8.5% in December (November: -0.8% yoy). Moreover, oil and gas exports declined 15.0% (November: -22.9% yoy).
Simultaneously, imports declined 5.5% in December, which contrasted both the 10.0% increase recorded in November and market expectations of a 4.9% expansion. Nevertheless, imports expanded 8.0% in the full year 2012 (2011: +30.8% yoy).
The trade deficit reached USD 155 million in December. Moreover, in the full year 2012, the trade balance recorded a shortfall of USD 1.6 billion, Indonesia's first annual trade deficit. In 2011, the country posted a trade surplus of USD 26.1 billion.