Indonesia reported the trade surplus in March worth of US$740 million, lowered than February surplus $2.34 billion, it said today (04/15) - Photo by BPS Office

JAKARTA (TheInsiderStories) – Indonesian trade surplus increased to US$1.27 billion in June 2020 from $0.30 billion in the same month of the previous year, Statistics Indonesia reported today (07/15). It was the second straight month of surplus in the trade balance, as exports rose while imports fell.

The realization is lower than the $2.09 billion surpluses in May but higher than the $200 million surpluses in June 2019. In total, the country’ trade balance recorded a surplus of $5.5 billion in January-June. The figure was better than the deficit of $1.93 billion in the same period in 2019.

The trade surplus supported by an export value of $12.03 billion, up 15.09 percent from $10.45 billion the month earlier, while imports recorded $10.76 billion, up 27.56 percent from Mey. The agency detailed the export value rose 2.28 percent compared to the same period the previous year of $11.76 billion. The figure also improved from the contraction of -26.95 percent in the previous month.

“This is a very encouraging trend and we hope that this will be continued in the months ahead,” the agency head Suhariyanto told reporters through a video conference.

Specifically, the export performance was supported by oil and gas of $580 billion, went up 3.8 percent from the previous month. While non-oil and gas amounted to $11.45 billion, an increase of 15.73 percent. This supported by the crude oil price that rose 42.9 percent to $36.6 per barrel in June. Likewise, the non-oil and gas export commodities price also rise includes palm oil, rubber, kernels.

The increase in non-oil and gas exports was contributed by the agricultural industry of 18.99 percent to $280 billion, the manufacturing industry rose 15.96 percent to $9.6 billion, and the mining industry 13.69 percent to $1.51 billion. In total, the performance of non-oil exports still sustained around 95.16 percent of Indonesia’ total exports last month.

The export most went to India of $307.6 million, the United States of $278.4 million, China of $217.7 million, Japan $163 million, and Singapore $137.3 million. The exports fell to South Korea $59.6 million, Hong Kong $52.4 million, Spain $51.3 million, Taiwan $41.5 million, and Iraq $16.3 million. Cumulatively, exports from January to June were $76.41 billion, down 5.49 percent from $80.85 billion in same period last year.

Imports, on the opposite, supported by oil and gas amounted to $680 million billion, growing 2.98 percent from the previous month. While non-oil and gas recorded $10.09 billion, rose 29.64 percent from the previous month.

The increase in non-oil and gas imports came from consumer goods reaching 51.1 percent to $1.41 billion. The commodities mostly came from garlic, frozen meat, medicines and pears. Then, the import of raw/auxiliary goods rose 24.01 percent to $7.58 billion. Structurally, imports are dominated by raw/auxiliary goods reaching 70.39 percent of total imports.

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