Indonesia Records USD85.1 Million Trade Surplus in August

Indonesia’s trade balance in August 2019 recorded a surplus of USD85.1 million as the country’s export and import values stood at USD14.28 billion and USD14.20 billion respectively last month, the Central Statistics Agency (BPS) has reported.

The country’s trade balance in July 2019 recorded a deficit of USD60 million.

The trade balance in August 2019 also recorded a significant increase compared to that in the same period last year at USD1.02 billion.

BPH Chairperson Suhariyanto said that Indonesia’s exports last month dropped by 7.60 percent compared to that in July 2019, from USD15,454.2 million to USD14,280.3 million, while, compared to August 2018, exports slumped by 9.99 percent.

The drop in exports in August 2019 compared to July 2019, according to Suhariyanto, was caused by a decline in non-oil and gas exports of 3.20 percent, from USD13,848.6 million to USD13,404.9 million, as well as oil and gas exports that fell by 45.48 percent from USD1,605.6 million to USD875.4 million.

“Cumulatively, the value of Indonesia’s exports in period of January-August 2019 period reached USD110.07 billion, down by 8.28 percent compared to that in the same period in 2018, while non-oil and gas cumulative exports reached USD101.48 billion or a 6.66 percent decrease,” said Suhariyanto.

As for imports, Suhariyanto noted that Indonesia’s imports in August 2019 reached USD14.20 billion, down by 8.53 percent compared to that in July 2019, as well as compared to August 2018 which was a 15.60 percent decrease.

“Non-oil and gas imports in August 2019 reached USD12.56 billion, dropping by 8.76 percent compared to that in July 2019, as well as 8.77 percent compared to that in August 2018. Meanwhile, oil and gas imports in August 2019 reached USD1.63 billion, fell by 6.73 percent compared to July 2019, and 46.47 percent compared to August 2018,” Suhariyanto said.

The cumulative import value from January to August 2019, according to Suhariyanto, was recorded at USD111,883.4 million, dropping by 9.89 percent (USD12,283.5 million) compared to that in the same period in the previous year. The decline was recorded in oil and gas and non-oil /gas imports worth USD5,498.9 million (27.82 percent) and USD6,784.6 million (6.50 percent) respectively.

Further decline in oil and gas imports was caused by a decrease in imports of all oil and gas components, namely crude oil USD2,621.3 million (41.98 percent), oil yields USD2,566.3 million (22.26 percent), and gas USD311.3 million (15.61 percent).

The BPS also reported that during the last thirteen months, the highest value of oil and gas imports was recorded in August 2018 amounting to USD3.045.7 million and the lowest one was recorded in March 2019 amounting to USD1.520.8 million. Meanwhile, the highest non-oil and gas import value was recorded in October 2018 amounting to USD4,750.7 million and the lowest in June 2019 with USD9,782.4 million.

Suhariyanto went on to explain that the decline in the value of non-oil imports was caused by the decline in the value of imports of several major countries such as China worth USD358.7 million (8.75 percent), Italy (USD156.5 million, 48.20 percent), and Germany (USD116, 5 million, 29.90 percent).

Therefore,  compared to that in the same period the previous year, imports from January to August 2019 from thirteen major countries fell by 7.84 percent (USD6,577.9 million). This decrease was mainly contributed by Japan worth USD1,488.2 million (12.42 percent), Thailand worth USD1,010.9 million (13.88 percent), and Singapore worth USD889.6 million (13.37 percent).

“In terms of the role of total non-oil and gas imports from January to August 2019, the highest contribution was made by the ASEAN group with 19.54 percent, followed by the European Union with 8.47 percent. Meanwhile, thirteen main countries contributed to 79.20 percent, and China remains the largest import destination for Indonesia, constituting 29.17 percent of the total imports,” Suhariyanto concluded. (BPS PR/ ES)

Translated by: Muhardi
Edited by: M. Ersan Pamungkas