Enrico Tanuwidjaja, Economist at UOB Group, reviews the latest trade balance figures in Indonesia.

Key Takeaways

“Indonesia’s trade surplus narrowed to USD 4.2bn in Jul, a decrease from the preceding month’s USD 5.1bn, but still higher than market expectations of USD 3.9bn.”

“Exports grew 32.03% y/y, beating market expectations of 29.73% to achieve USD 25.6bn, driven by increased palm oil exports. Imports soared, growing at 39.9% y/y compared to consensus estimates of 37.3%, reaching USD 21.4bn, a sign of post-pandemic recovery.”

“We expect the overall trade surplus in 2022? to match 2021’s record of USD35.3bn, amidst soaring imports and exports as supply chains resume pre-pandemic levels of efficiency.”