Indonesia: Indonesia posts record trade deficit as exports continue to fall
December 3, 2012
In October, exports fell for the seventh consecutive month and contracted 7.6% over the same month last year. The contraction followed the 9.4% decrease observed in September and was larger than the 4.3% decline expected by the market. As a result, in the 12 months up to October, exports dropped 4.3% over the same period the previous year (September: -2.4% year-on-year). Non-oil and gas exports, which account for the majority of Indonesian shipments, fell 8.8% in October (September: -3.6% yoy).
Meanwhile, oil and gas exports declined 2.4% (September: -29.5% yoy). Imports, on the other hand, rose 10.8% in October, which was up both from the 1.2% increase recorded in September and market expectations of a 0.9% expansion. As a result, imports grew 11.3% in annual terms in the last 12 months (September: +12.5% yoy). The trade deficit reached USD 1.5 billion in October, which marks the largest shortfall on record. That said, the 12-month moving sum of the trade balance reached USD 1.9 billion surplus in October, which was smaller than the USD 4.9 billion surplus recorded in September.