JAKARTA (TheInsiderStories) – Indonesia’s trade deficit declined sharply to US$3.20 billion in 2019 from an $8.69 billion recorded a year earlier as export grew 6.94 percent to $167.53 billion lower than imports figures worth $170.72 billion despite a decline of 9.53 percent year on year, Statistics Indonesia has reported today (01/15).

“The 2019′ deficit is much smaller, almost a third compared to the deficit in 2018 which reached $8.69 billion. The deficit occurred due to the export value was smaller than import,” head of Statistic Agency, Suhariyanto, told media at his office in Jakarta.

The highest contribution of exports came from mineral fuels reaching $22.22 billion or 14.35 percent of the total export portion and vegetable animal oil fats of $ 17.61 billion, equivalent to 11.37 percent. In 2019, Indonesia’s highest non-oil and gas exports went to China by $25.85 billion, followed by the United States (US) of $17.68 billion, and Japan by $13.75 billion, Suhariyanto explained.

Imports, in the opposite, raw materials or auxiliaries are the largest import component reaching $125.9 billion. Then, capital goods trailed by $28.41 billion, and consumer goods of $16.41 billion. The highest imports came from China at $44.58 billion, Japan by $15.59 billion, and Thailand worth $9.41 billion, the data showed.

In December, the deficit also dropped $0.03 billion from $1.07 billion in the same month a year earlier. Exports rose 1.28 percent, due to non-oil and gas products went on 5.78 percent, while those of oil and gas fell by 31.93 percent. Meanwhile, imports dropped 5.62 percent, due to non-oil and gas products fell by 7.28 percent, while oil and gas rose 5.33 percent.

“By sector, non-oil exports of the manufacturing industry fell 2.73 percent compared to the same period in 2018, and exports of mining and other products dropped 15.30 percent. While exports of agricultural products rose 5.31 percent,” Suhariyanto revealed.

Suhariyanto detailed that the largest non-oil and gas exports were to China by $2.32 billion, followed by the US of $1.67 billion, and Japan by $1.17 billion with the contribution of the three reaching 38.70 percent. While exports to the European Union (28 countries) amounted to $1.28 billion.

By province, exports came from West Java with a value of $29.94 billion (17.87 percent), followed by East Java at $18.67 billion (11.14 percent) and East Kalimantan by $16.41 billion (9.79 percent).

Meantime, imports in December reached $14.50 billion, down 5.47 percent compared to the previous month, also down 5.62 percent from December 2018. Non-oil imports this month reached $12.37 billion, down 6.35 percent compared to the previous month, and dropped 7.28 percent when compared to the same month in 2018. The largest decrease was vehicle class and its parts by $254.7 million (36.77 percent), while the biggest increase was the sugar and confectionery group by $89.1 million (99.89 percent).

While oil and gas imports reached $2.13 billion, down 0.06 percent compared to the previous month, but rose 5.33 percent compared to December 2018. The biggest non-oil and gas imports come from China with a value of $44.58 billion (29.95 percent), Japan by $15.59 billion (10.47 percent), and Thailand of $9.41 billion (6.32 percent).

“The value of imports of all categories of goods, both consumer goods, raw/auxiliary goods, and capital goods during 2019, decreased compared to the same period the previous year by 4.51 percent; 11.07 percent; and 5.13 percent, respectively,” Suhariyanto ended.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com