Indonesia: Trade surplus narrows in June
July 17, 2015
Exports contracted 12.8% in June over the same month last year, which followed the 14.4% decline observed in May. June’s result marked the ninth consecutive loss. Non-oil and gas exports, which account for the majority of Indonesian shipments, dropped 5.1% in June (May: -9.1% year-on-year). Oil and gas exports contracted a staggering 47.7% (May: -42.3% yoy). Meanwhile, imports fell 17.4% in June, which followed the 21.4% contraction in May and marked the softest contraction in three months.
The trade surplus narrowed from USD 1.1 billion in May to USD 477 million in June. This result contrasted the USD 288 million deficit recorded in the same month of 2014 and came in slightly below the USD 480 million surplus the market had expected. Meanwhile, the 12-month moving sum of the trade balance jumped from a USD 2.8 billion surplus in May to a USD 3.6 billion surplus in June.
Author: Carl Kelly, Economist