Indonesia: Indonesia posts largest trade deficit since 2008
June 1, 2012
In April, exports contracted 3.5% over the same month last year, which contrasted both the 5.4% expansion observed in March (previously reported: +5.5% year-on-year) and market expectations of a 2.6% rise. Non-oil and gas exports, which account for the majority of Indonesian exports, contracted 2.4% in April (March: +3.5% yoy). Meanwhile, oil and gas exports also decreased a more severe 7.3% in April (March: +13.8% yoy). Imports, on the other hand, increased 11.6% in April, which was below the 12.7% rise recorded in March but above market expectations of a 10.0% increase. As a result, the trade balance registered a shortfall of USD 641 million in April, which contrasted both the USD 1.7 billion surplus registered in the same month last year and market expectations of a USD 884 million surplus. In fact, the figure represented the largest trade deficit since April 2008.