Indonesia's trade deficit narrowed slightly in January as there has been better demand from developed countries. However, Indonesian exports remain under pressure with persistent weak global demand. Moreover, higher crude oil prices increase the country's import costs. In addition to Indonesia's trade deficit, annual inflation increased to 5.31 percent in February due to rising food prices and higher electricity tariffs.
According to Statistics Indonesia, the country experienced a trade deficit of US $170 in January. Imports increased to US $15.55 billion, a 6.82 percent rise compared to January 2012, but a 0.22 percent decline compared to December 2012. The biggest contributors to Indonesia's import numbers are electric appliances and mechanical equipment. Together, they account for about 33 percent of the imports in January.
Exports from Indonesia totaled US $15.38 billion in January, an 1.24 percent decline compared to January 2012, and a 0.11 decline compared to December 2012. Most products that were exported in January constituted minerals and animal/vegetable fats and oils.