JAKARTA (TheInsiderStories)–Indonesia still recorded trade deficit US$1.02 billion in August or lowered 49.75 percent from previous month worth of $2.03 billion, Statistics Indonesia reported on Monday (17/09).
Head of Statistic Indonesia Suhariyanto reported, the country’ export recorded $15.82 billion (year on year) or grew 4.15 percent and imports i$16.84 billion or grew 24.65 percent (year on year) or slipping by 7.97 percent from July.
He added non-oil and gas imports in August amounted to $13.79 billion, or 14.50 percent higher than that of July and up by 19.97 percent from August 2017.
Most imported items of non-oil and gas products in August, compared to July 2018, are in sectors such as milk, margarine, eggs, valued at USD48.6 billion or 94.19 percent. Meanwhile, the largest drop came from the sector of machines and airplane mechanics that contributed $296.3 million or 11.31 percent, said Suhariyanto.
He also stated that oil and gas imports in July climbed by 14.50 percent compared to July 2018. This number is higher by 51.43 percent compared to August 2017.
Increased imports in the oil and gas sector was owing to higher imports of oil and gas components, including crude oil with $1.83 million.
The government effort to reduce trade deficit through various policy has give an impact to the Indonesian trade balance. All the efforts its expected to lowering the nation’s current account deficit by the end of this year.
Coordinating Minister for Economic Affairs Darmin Nasution optimist Indonesia’s trade balance will improved by the end of 2018 followed the new government policy such as blended biodiesel (B20) use for all diesel-engined vehicles and other policies.
Trade deficit has put a more pressure to Rupiah as it worsens the current account and Indonesia’s balance of payments. Nasution ensured, to keep the CAD in the good position, government will work hard to boost exports and reduce imports.