Indonesia: Trade surplus widens in June, despite falling exports
July 17, 2017
Indonesia’s trade surplus widened in June, as plummeting imports outpaced an unexpected fall in exports. The trade surplus came in at USD 1.6 billion, up from the USD 1.1 billion gain recorded in June 2016. The result was well above market expectations of a USD 0.6 billion surplus.
Exports fell 11.8% over the same month last year, a stark contrast to May’s revised 24.6% increase (previously reported: +24.1% year-on-year). Non-oil and gas exports, which account for the majority of Indonesian shipments, plunged 13.9% in June (May: +23.6% yoy). Oil and gas exports rose 8.7%, a tepid gain compared to the previous month’s 35.3% increase. Imports also plummeted notably, shrinking 17.2% (May: +23.6% yoy). June’s sharp contractions were partly influenced by the different timing of the Eid holiday this year, which has distorted the data.
Meanwhile, the 12-month moving sum of the trade balance improved from May’s USD 12.5 billion surplus to USD 13.0 billion in June – the best result since May 2012.
Author: Nihad Ahmed, Economist