Indonesia's Statistics Agency (BPS) announced on Monday (15/08) that the trade balance of Indonesia showed a surplus of USD $598 million in July 2016, down from a USD $879.2 million surplus in the preceding month and considerably below analyst forecasts. Although Indonesia, Southeast Asia's largest economy, booked a USD $4.2 billion trade surplus in the first seven months of 2016, concern about Indonesia's weakening exports and imports persist. Faster falling imports (compared to exports) explains the trade surplus.
Based on the latest data, Indonesia's exports fell 26.7 percent (month-on-month) or 17.0 percent (year-on-year) to USD $9.51 billion in July 2016. BPS Chairman Suryamin informed that the July 2016 export value of Indonesia was the lowest July value since 2009 when Indonesian exports reached USD $9.6 billion). Besides the sluggishly growing global economy, the decline in Indonesia's July exports was attributed to fewer working days as Indonesia celebrated Idul Fitri (marking the end of the fasting month) between 4 - 8 July 2016. Also, prior and after this national holiday many entrepreneurs are still not operating at full capacity.
Indonesia's oil and gas exports fell 15.9 percent (m/m) to USD $998.6 million in July, while its non-oil and gas exports fell 27.8 percent (m/m) to USD $8.52 billion (especially exports to the USA and Japan declined markedly, while exports to Australia rose sharply).
Meanwhile, Indonesia's imports fell 26.3 percent (m/m) or 11.6 percent (y/y) to USD $8.92 billion in July 2016. Oil and gas imports fell 16.8 percent (m/m) or 35.8 percent (y/y) to USD $1.47 billion in July, while non-oil and gas imports fell 27.9 percent (m/m) or 4.4 percent (y/y) to USD $7.44 billion.
Indonesia's benchmark stock index (Jakarta Composite Index) fell 1.18 percent in the first trading session on Monday (15/08) to 5,313.69 points.
Indonesia's July 2016 Trade Balance:
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