Highlights of June’s Trade Balance
June’s trade balance was in surplus of USD196 million, falling from May’s USD218 million. The IH19 accumulative trade deficit was USD1.93 billion, an increase from USD1.19 billion in 1H18 and the worst figure to 6-year deep.
June’s number was attributable to imports, falling at a deeper level than exports. Imports and exports, on a monthly basis, shed 20.7% m-m and 20.5% m-m, respectively due to the seasonal pattern of Idulfitri, while imports, on a yearly basis, picked up 2.8% y-y, in a sharp turn to a 9.0% y-y decline in exports.
Exports Slump
June’s non–oil and gas exports — mineral–based fuel, vehicles & their spare–parts, fat& vegetable oil and grease posting the worst declines — slipped 19.4% m-m to USD11,0 billion. Meanwhile, oil and gas exports were at a significant drop’s 34.4% m-m to USD746 million; gas exports even hit hardest as its volume and prices plunged.
Indonesia’s exports to a number of countries have been retreating —China, the US, Japan, India, and ASEAN economies― as a slowdown in broader economy and trade tensions dampened markets. The weak aggregate prices 2.9% y-y and muted exports volume of 6.4% added to the evidence of a slowdown in the export numbers.
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