While Indonesia Investments predicted the decline in imports into Indonesia in May 2021 – after Ramadan and Idul Fitri momentum had passed – we were surprised to see a significant drop in the country’s exports that same month.
Shipments to almost all key export destinations dropped (compared to the preceding month). And since we have not received information and data that indicate or hint at a general decline in global demand in May 2021, the reason behind this decline in Indonesian exports should be found in national holidays.
Most likely, it was the holiday period (the end of the Ramadan and the almost-week-long Idul Fitri holiday that marks the end of Islam’s holy fasting month) that caused trade activity in Indonesia to ease in May 2021 (compared to April 2021). Similarly, China had a five-day Labor Day holiday at the start of May that undermined the flow of goods between both countries (China being Indonesia’s biggest trading partner).
Read the full article in the June 2021 report. This report can be ordered by sending an email to email@example.com or a message to +62.882.9875.1125 (including WhatsApp).