Stock trading illustration.
JAKARTA (TheInsiderStories) — Investors responded negatively the trade balance data and pulled out from Indonesian financial market on Wednesday (05/15). Foreign investors recorded net sales of Rp447.48 billion (US$31.39 million) in all markets.
The negative sentiment has bring the Jakarta Composite Index (JCI) dropped below 6,000 and Rupiah near to 14,500 against the Greenback. Today, the JCI decreased 1.49 percent to 5,980 from yesterday at 6,071.20 and Rupiah closed at 14,445 versus US Dollar.
Statistic Indonesia reported, the country’ trade balance is worsening to $2.57 billion and imported $55.77 billion of goods in April. Export values from January to April also fell 9.39 percent to $53.2 billion, compared to the same period last year.
The trade balance hit poorly in April, by having $2.5 billion deficit alone from previous months, Indonesia recorded trade balance surplus $540.2 million. In March, Indonesian exports fell from 14.12 billion to $12.6 billion.
Head of the agency Suhariyanto said, the downturn was caused by the decreasing price of coal, tin, nickel and iron ore. Indonesian mining export itself declined by 7.31 percent. Then, the non-oil and gas exports dropped by 34.95 percent.
Other export, such as agriculture is also under pressure due to the palm oil’s weakening price and slowdown rubber production. The agriculture products export slumped by 6.74 percent. But according to Suhariyanto, agriculture export fall is seasonal.
The imports, on the opposite, moved higher by 12.25 percent to $15.1 billion in April. Almost all categories recorded higher amount of imports.
Consumption goods spiked by 24.12 percent ahead of Ramadan. Furthermore, raw material and capital goods hiked by 12.09 percent and 6.78 percent respectively.
Suhariyanto explained that both of oil and gas and non-oil and gas sectors had higher imports. The oil and gas import rocketed by 46.99 percent, while the non-oil and gas hiked by 7.82 percent.
He said that there are many challenges during April. Price hike, economic slowdown, fluctuated price of commodities, and geopolitic condition are some factors impacted the export decline.
“It needs to be anticipated due to global trade challenges will be more complicated,” he realized.
To slash the non-oil and gas import, Indonesian government just decided to suspended diesel and aviation turbine fuel, in order to slash trade balance deficit condition.
While, Finance Minister Sri Mulyani Indrawati rated the deep trade deficit caused lot of policies taken after election. She assured will explore the major item make the trade deficit number more bigger.
US$1: Rp14,300
by Linda Silaen, Email: linda.silaen@theinsiderstories.com  

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