Indonesia: Trade surplus grows in July as imports tumble more than exports
August 19, 2015
Exports contracted 19.2% in July over the same month last year, which followed the 12.4% decline observed in June. July’s result marked the third consecutive double-digit loss and largest contraction in nearly three years. Non-oil and gas exports, which account for the majority of Indonesian shipments, dropped 14.1% in July (June: -4.4% year-on-year). Oil and gas exports contracted a staggering 43.0% (June: -48.3% yoy). Meanwhile, imports fell 28.4% in July, which followed the 17.3% contraction in June and marked the sharpest contraction in seven years.
The trade surplus grew from USD 528 million in June to USD 1.3 billion in July. This result overshadowed the USD 42 million surplus recorded in the same month of 2014 and more than doubled the USD 520 million surplus the market had expected. Meanwhile, the 12-month moving sum of the trade balance jumped from a USD 3.6 billion surplus in June to a USD 4.9 billion surplus in July.
Author: Carl Kelly, Economist