JAKARTA (TheInsiderStories) – Indonesia unexpectedly posted a trade surplus US$0.21 billion in May, swinging from $1.45 billion gaps in the same month a year earlier (YoY), missing market consensus of a $1.38 billion gap, as exports fell 8.99 percent (YoY) while imports declined at a faster 17.71 percent, Statistics Indonesia has reported today (06/24).
“There are some of our countries that are still surplus. Our trade balance is still a surplus from the United States of $3.9 billion, India $3.08 billion and the Netherlands. But our biggest deficit with China, January-May is $8.48 billion,” head of the central statistics agency Kecuk Suhariyanto told the media in Jakarta.
In details, the bureau reported, exports fell 8.99 percent from a year earlier to $14.74 billion in May, an increase of 12.42 percent compared to April’ exports. Meanwhile, compared to May 2018, it decreased by 8.99 percent.
It is better than market consensus of a 14.7 percent decline and after a downwardly revised 13.1 percent drop in the prior month. It was the seventh straight month of decrease in exports.
Non-oil and gas exports reached $13.63 billion, up 10.16 percent compared to April, but fell 6.44 percent from the same month the previous year.
Cumulatively, the value of Indonesian exports in January-May reached $68.46 billion, a decrease of 8.61 percent compared to the same period in 2018, as well as non-oil and gas exports reaching $63.12 billion or a decrease of 7.33 percent.
The largest increase in May’s non-oil and gas exports to April occurred in animal/vegetable fats and oils of $178.0 million (14.97 percent), while the largest decrease occurred in ore, crust and metal ash of $131.1 million (49.05 percent).
According to the sector, non-oil and gas exports from the January-May processing industry fell 6.27 percent compared to the same period in 2018, as well as exports of agricultural products down 1.89 percent, and mining and other exports fell 12.67 percent.
The largest non-oil/gas export in May was to China, which was $2.23 billion, followed by the United States $1.63 billion and Japan $1.20 billion, with the contribution of the three reaching 37.17 percent. While exports to the European Union (28 countries) amounted to $1.38 billion.
The imports, on the opposite, tumbled 17.71 percent in May (YoY), worse than market consensus of a 13.9 percent drop. This marked the fifth straight month of yearly fall in inbound shipments, amid continual efforts from the government to reduce purchases and help manage the country’s current account deficit.
May non-oil and gas imports reached $12.44 billion, down 5.48 percent compared to the previous month. Similarly, compared to May 2018, it fell 15.94 percent. May’s oil and gas imports reached $2.09 billion, down 6.41 percent compared to the previous month, and fell 26.89 percent compared to May 2018.
The biggest decline in non-oil and gas imports in May compared to April was the category of machinery and electrical equipment of $158.5 million (8.68 percent), while the largest increase was in the vegetable group of $69.8 million (269.50 percent).
The three largest non-oil/gas goods supplier countries during January-May were occupied by China with a value of $18.03 billion (29.31 percent), Japan $6.46 billion (10.50 percent), and Thailand $3.95 billion (6, 43 percent). Non-oil and gas imports from ASEAN were 19.18 percent, while those of the European Union were 8.23 percent.
The import value of all classes of use of goods, both consumer goods, raw/auxiliary goods, and capital goods during January-May, decreased compared to the same period of the previous year, respectively 11.10 percent, 9.39 percent, and 7.41 percent.
Written by Lexy Nantu, Email: email@example.com