Update COVID-19 in Indonesia: 1,769,940 confirmed infections, 49,205 deaths (22 May 2021)
7 June 2021 (closed)
USD/IDR (14,146) -6.00 -0.04%
EUR/IDR (17,335) +57.05 +0.33%
Jakarta Composite Index (6,069.94) +4.77 +0.08%
Indonesia started the year with another comfortable trade surplus. In January 2021 the country posted a trade surplus of USD $1.96 billion. Since May 2020 Indonesia has been recording an impressive series of big trade surpluses, each month. This is a positive matter for the country’s current account balance and the rupiah rate (and thus also supports risk appetite in the capital markets).
However, to quote English playwright William Shakespeare: "all that glitters is not gold". Ever since the beginning of the COVID-19 crisis in Indonesia (starting around March-April 2020), Indonesia Investments has emphasized that the significant drop in imports into Indonesia is quite alarming. Ideally, an increase in non-oil and gas exports (especially processed high value goods) is what triggers a surplus. However, in the case of Indonesia the recent wide trade surpluses are primarily caused by the collapse of imports (involving capital goods, raw materials, and consumer goods).
This update consists of 13 pages.
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