Indonesia: Indonesia posts record trade deficit in June
August 1, 2012
In June, exports contracted a whopping 16.4% over the same month last year, which followed the 8.0% decline observed in May (previously reported: -8.5% year-on-year) and was more than twice the 7.9% contraction expected by the market. Non-oil and gas exports, which account for the majority of Indonesian shipments, fell 15.0% in June (May: -7.8% yoy). Meanwhile, oil and gas exports fell an even more severe 22.3% in June (May: -8.5% yoy). Imports, on the other hand, increased 10.7% in June, which was below both the 14.9% rise recorded in May and market expectations of a 14.1% increase. As a result, the trade balance registered a record shortfall of USD 1.3 billion in June, contrasting both the USD 3.3 billion surplus registered in the same month last year and market expectations of a USD 532 million surplus.