Economist at UOB Group Enrico Tanuwidjaja reviews the trade balance results in Indonesia.

Key Takeaways

“Oct’s trade surplus came in higher than expected at USD5.7bn and with that, Indonesia’s cumulative trade surplus this year up to Oct 22 widened to USD45.5bn. This is a historical high trade surplus for Indonesia.”

“The wider trade surplus took place despite exports growth coming in slightly below expectations at 12.3% y/y (consensus was at 13.5%). As such, the widening of last month’s trade surplus can be well attributed to a much slower imports growth of 17.4% y/y viz. expectation of 24.0%. Exports stood at USD24.8bn in Oct (same level per Sep, +0.1% m/m) and imports at USD19.1bn (-3.4% m/m).”

“Oil & gas exports drove overall exports last month while both oil & gas and non-oil & gas imports declined, yielding a wider trade surplus. Overall, Oct’s higher trade surplus was still mainly driven by strong non-oil & gas surplus of USD7.7bn but was offset by an oil & gas trade deficit of USD2bn.”