Stronger trade balance performance in October 2014 is evidence of Indonesia’s persistent external balance recovery. Indonesia’s trade balance in October 2014, according to BPS-Statistics Indonesia, recorded a US$0.02 billion surplus after experiencing a US$0.26 billion deficit in the preceding month. A US$1.13 billion non-oil/gas surplus, up from US$0.77 billion in the previous month, contributed to the improvement. The growing non-oil/gas surplus stemmed from a surge in exports of vegetable/animal fats and oils as well as manufactured items such as electrical machinery/equipment, mechanical machinery/equipment, automobiles and their components and jewellery/gems. Based on destination, the increase in non-oil/gas exports in October 2014 was primarily sent to Japan, India, Singapore, Malaysia and Australia. The growing trade surplus was also influenced by a decline in non-oil/gas imports in line with moderating domestic demand. Non-oil/gas imports declined from US$11.89 billion in September 2014 to US$11.75 billion in the reporting month, mainly due to fewer imports of machinery and mechanical equipment, electrical machinery and equipment as well as motor vehicles and their components. In contrast, the oil and gas deficit swelled to US$1.11 billion in October from US$1.03 billion in September, in particular due to a decline in crude oil exports. Bank Indonesia perceives that the trade balance up to October 2014 will contribute favourably towards improvements in the current account during the fourth quarter of 2014 and for the year in general. Bank Indonesia predicts that further gains in the trade balance moving forward will stem from escalating export activity as the global economy recovers along with the downward international oil price that will alleviate pressure on the oil and gas trade deficit. Furthermore, Bank Indonesia will remain vigilant of global and domestic risks that could influence the current account deficit as well as external resilience.
Posted on: Sat, 20 Dec 2014 10:33:54 +0000
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