As expected, Indonesia’s trade performance rebounded strongly in June 2022. This was certainly not a surprise considering the country’s exports had been held back significantly in May 2022 because of the government’s palm oil export ban that was imposed between 28 April 2022 and 23 May 2022 (in an effort to stabilize domestic cooking oil prices).
Meanwhile, in terms of the import performance, we detected a sound increase in raw material imports into Indonesia, indicating that manufacturers ramp up production (which is always a positive sign in the context of economic activity and growth). But before we delve into Indonesia’s latest trade statistics, we first take a quick look at the international environment.
Based on the latest publication released by the United Nations Conference on Trade and Development (UNCTAD), the value of global trade (goods and services) grew to a record USD $7.7 trillion in Q1-2022, which is an increase of around USD $1 trillion relative to the same quarter one year earlier.
Compared to Q4-2021, growth was a bit more modest at USD $250 million. What is important to note is that volume-wise growth in global trade was much lower, and so the increase in the value of global trade is particularly triggered by higher global commodity prices. Hence, the UNCTAD report mentions that export growth has been generally stronger in commodity-exporting regions (such as Indonesia).
Regarding global trade in the first quarter of 2022, most economic sectors recorded substantial year-on-year (y/y) increases in value, with high fuel prices being behind the very strong increase in the value of trade in the energy sector. However, trade in the transportation sector and communication equipment remained below the levels seen in 2021 and 2019.
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