Indonesia: Trade surplus widens on surging exports
June 30, 2011
In May, exports grew 44.9% over the same month last year to reach USD 18.3 billion, an all-time high, which was above the 37.5% expansion observed in April. Surging exports benefitted from rising commodity prices as Indonesia's main export product is crude palm oil. The May reading represented the 20th consecutive month of double-digit growth in exports. The expansion reflected improvement in non-oil and non-gas exports, which accelerated from a 28.8% increase in April to expand 45.7% in May. On the other hand, oil and gas exports continued to lose pace and expanded 33.9% over the same month the previous year (April: +36.6% yoy). Meanwhile, imports expanded 48.5% over the same month last year to reach USD 14.8 billion. As a result, the trade surplus widened from USD 1.7 billion in April to USD 3.5 billion in May. Positive net exports contribute positively to economic growth, which stood at 6.5% in the first quarter of 2011.