The contraction of Indonesia's export and import performance (on an annual basis) was not in line with analysts' forecasts. Analysts had expected to see export growth on the back of strengthening non-oil & gas exports. Bank Indonesia officials, for example, expected strong non-oil & gas exports last month. Meanwhile, BPS Head Suhariyanto attributed the June contraction to Idul Fitri holidays and restrictions for trucks on toll roads.

On a monthly basis, Indonesia's June exports and imports tumbled 18.82 percent and 27.26 percent, respectively. However, this huge drop of imports in June is normal because Indonesia imported many products ahead of the Ramadan month and Idul Fitri celebrations.

It therefore needs to be emphasized that Indonesia's trade data in June are distorted because the Idul Fitri holiday fell in late June this year, whereas last year it fell in early July.

Trade Balance Indonesia (in billion rupiah):

2017 Export
January  13.38  11.99   1.39
February  12.57  11.16   1.31
March  14.59  13.36   1.23
April  13.17  11.93   1.24
May  14.35  13.77   0.47
June  11.64  10.01   1.63

Source: BPS