Indonesia: Trade surplus falls in July
August 15, 2016
A notable fall in exports caused Indonesia’s trade surplus to tumble in July. Exports declined 17.0% over the same month last year, which was a deeper contraction than the 4.0% drop seen in June. July’s result marked the largest drop in exports since January. Non-oil and gas exports, which account for the majority of Indonesian shipments, plunged 15.2% in July, which was a more pronounced drop than June’s 2.3% decrease. Oil and gas exports contracted a staggering 29.8% (June: -17.6% year-on-year). Meanwhile, imports fell 11.6% in July, which followed the 6.8% contraction seen in June.
As a result, the trade surplus narrowed in July, falling from June’s USD 879 million to USD 598 million. In addition, the result was below July 2015’s USD 1.4 billion surplus and undershot market expectations. Meanwhile, the 12-month moving sum of the trade balance fell from a USD 6.8 billion surplus in June to a USD 6.0 billion surplus.