Indonesia: Trade surplus narrows in August
September 15, 2015
Exports contracted 12.3% in August over the same month last year, which was an improvement over the 18.8% drop seen in July. August’s result marked the fourth consecutive double-digit loss. Non-oil and gas exports, which account for the majority of Indonesian shipments, dropped 6.0% in August (July: -13.6% year-on-year). Oil and gas exports contracted a staggering 41.1% (July: -43.0% yoy). Meanwhile, imports fell 17.1% in August, which was above the 28.4% contraction seen in July and marked a five-month high.
The trade surplus narrowed from USD 1.38 billion in July to USD 434 million in August. This result contrasted the USD 312 million deficit recorded in the same month of 2014 and undershot the USD 630 million surplus the market had expected. Meanwhile, the 12-month moving sum of the trade balance advanced from a USD 5.0 billion surplus in July to a USD 5.7 billion surplus in August.
Author: Carl Kelly, Economist