It is interesting that the economic recession and major disturbances to international trade in fact seem to have a positive effect on Indonesia’s trade balance. What does that tell us?

Well, considering the surplus is caused by massively plunging imports (which – by far – exceed the decline in the country’s exports), it tells us that the COVID-19 crisis particularly hits the demand side of the Indonesian economy. With the Indonesian consumer being less eager to consume, the need for imports of consumer goods falls. Especially the middle class and upper class have reduced their consumption habits due to the COVID-19 crisis, and instead, have been saving money on bank accounts.

Indonesia’s Balance of Trade (above zero = trade surplus):

[...]

This update consists of 12 pages

Our updates are only available to subscribers of the Indonesia Investments report. To receive updates on crucial economic, political and social developments, you can request for further subscription details through info@indonesia-investments.com or +62(0).882.9875.1125 (including WhatsApp).

Look Inside the Update

-

Bahas