POST Online Media Lite Edition



 

Indonesia records trade surplus in February, exports decline sharply

Staff Writer |
According to Statistics Indonesia, the country recorded a trade surplus of USD 0.3 billion in February, confounding market expectations of a deficit.

Article continues below




February’s figure marked the first surplus in Indonesia since September last year and contrasted the USD 0.1 billion deficit recorded in the same month of 2018.

Indonesia's surplus can be largely attributed to a sharp 14.0% year-on-year fall in imports, driven by lower energy and non-energy imports.

The decline can likely be explained in part by government measures to curb imports and trim the current account deficit.

Exports were also down sharply (-11.3% yoy) on lower energy and non-energy exports amid a more challenging external environment, with soft momentum in many developed economies.

Looking ahead, FocusEconomics panelists still see Indonesia'sexport growth for 2019 as a whole despite the weak start to the year, although global trade tensions could weigh on the performance.

In contrast, Indonesia'simport growth will be limp over 2019 as a whole, on a tough base effect and as government measures continue to take effect.

Last month, panelists saw exports and imports expanding 7.8% and 3.9% respectively in 2019, which would bring the trade balance to a USD 1.8 billion deficit.

For 2020, the panel saw exports and imports growing 7.3% and 8.4% respectively, with a trade deficit of USD 4.2 billion.

A new Consensus Forecast will be released on 19 March.


What to read next

South Korea has longest current account surplus for 47 months
Trade surplus falls in Indonesia in November
Despite U.S. pressures Canada's exports increased, trend looks excellent