The trade balance of Indonesia improved in 2014. Over the whole year of 2014 Indonesia posted a USD $1.88 billion trade deficit, significantly better than the USD $4.08 billion deficit it recorded a year earlier. Today (02/02), Statistics Indonesia announced that Indonesia posted a USD $0.19 billion trade surplus in the last month of the year after having recorded a USD $0.42 billion trade deficit in the preceding month. The improved performance is mainly due to the country’s growing non-oil & gas surplus and narrowing oil & gas deficit.
The country’s non-oil & gas trade surplus in December 2014 was USD $1.22 billion, higher than the USD $0.94 billion surplus in the previous month, due to the 6.6 percent (m/m) increase in non-oil & gas exports to USD $12.27 billion. The increase in non-oil & gas exports was mainly caused by growth of export of manufactured products such as jewellery/gems, machinery/electrical equipment, vehicles and parts, and machinery/mechanical appliances. Meanwhile, natural resource-based exports that increased were rubber and rubber-derived products. However, the non-oil & gas trade surplus in December 2014 was curtailed by an increase in non-oil & gas imports, particularly growth of imports of iron and steel, cereals, cotton, as well as iron and steel goods.
Meanwhile, Indonesia’s oil & gas balance in December 2014 also improved. Oil & gas exports grew 11.7 percent (m/m) to USD $2.35 billion, mainly supported by an increase in crude oil, oil products, and gas exports. On the other hand, oil & gas imports declined by 2.4 percent (m/m) or be of 3.39 billion US dollars, which is caused by a drop in imports of gas and oil products.
Indonesia’s central bank (Bank Indonesia) said in a statement that it believes that the improved trade performance of Indonesia will have a positive impact on the country’s current account balance in 2014. Bank Indonesia predicts that the overall performance of the trade balance will continue to improve in the foreseeable future supported by an increase in export activity in line with the global economic recovery and the downward trend in global oil prices.
Indonesia Balance of Trade (in USD million):
Indonesia’s January 2015 Inflation
Indonesia’s Consumer Price Index (CPI) in January 2015 recorded deflation of 0.24 percent (m/m), primarily due to the government’s decision to reduce administered fuel prices (diesel and low octane gasoline) as well as easing inflationary pressures stemming from volatile food prices. On a year-on-year basis, Indonesian inflation eased to 6.96 percent (y/y), from 8.36 percent (y/y) in the preceding month.
Inflation in Indonesia:
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Source: Statistics Indonesia (BPS)
Inflation of Indonesia 2008-2014:
(annual percent change)
Sources: World Bank