Indonesia’s Trade Balance Performance will Improve, BI

Jakarta, InfoPublik – Bank Indonesia (BI) views production and investment activities, in line with improving domestic economic outlook.

"In the future, Bank Indonesia believes that the performance of the trade balance will improve as the world economic recovery continues and global commodity prices remain high. This outlook, in turn, will support the prospects for economic growth and the sustainability of the current account," BI Governor Agus Martowardojo said in Jakarta, Tuesday (5/15).

BI Governor explained, Indonesia's trade balance in April 2018 experienced a deficit of US$1.63 billion in line with the increase of domestic economic activity.

The deficit is affected by the deficit in the non-oil and gas trade balance and deficit in the oil and gas trade balance. Within the period of January-April 2018, Indonesia's trade balance recorded a cumulative deficit of $1.31 billion.

He explained that the non-oil and gas trade balance in April 2018 recorded a deficit of $0.50 billion which is affected by non-oil and gas imports amid a slowdown in non-oil and gas exports.

Non-oil/non-gas imports were recorded at $13.77 billion, up $1.55 billion compared to March 2018 imports, driven mainly by increases in imports of capital goods and raw materials including machinery and electrical tools, iron and steel, cereals, as well as airplanes and spare parts.

The increase in imports showed the increase of production and investment activities along with the continued improvement of  domestic economy. Meanwhile, non-oil exports recorded at $13.28 billion, down$ 0.97 billion from March 2018 mainly due to lower exports of mineral fuel, animal fats and oils, jewelry/gems, ores, crust and ash metals, and iron and steel.

"Cumulatively from January to April 2018, non-oil and gas trade balance recorded a surplus of US $2.50 billion," he said.

In addition, added Agus, the oil and gas trade balance recorded an increase in deficit influenced by the decline of oil and gas exports, amid rising oil and gas imports. The April 2018 oil and gas trade balance deficit stood at $1.13 billion, up from $0.90 billion in March 2017.

This development is influenced by oil and gas exports which dropped $0.15 billion (mtm), mainly crude oil exports. Meanwhile, oil and gas imports rose by $0.08 billion (mtm), mainly from imports of oil and gas.

"Cumulatively, the oil and gas trade balance experienced a deficit of $3.81 billion, higher than the deficit in the same period the previous year which reached $3.19 billion," he concluded. (Translator: Wilda Stiana)