Indonesia: Trade surplus widened in October – UOB
|UOB Group’s Economist Enrico Tanuwidjaja and Junior Economist Agus Santoso comment on the latest trade balance figures in Indonesia.
Key Takeaways
Indonesia recorded its 42th consecutive month of trade surplus amid higherthan-expected exports. Indonesia recorded a robust trade surplus of USD3.5bn in Oct 2023, up from USD3.4bn in Sep and higher than consensus expectation of USD3.4bn.
Oil and gas (OG) exports grew by 6.6% y/y, continued its positive growth trajectory and non-oil and gas (non-OG) exports continued to fall by 11.4% y/y, better than prior month’s contraction of 17.7% y/y. Meanwhile, OG imports contracted by 4.7% y/y, larger than Sep’s contraction of 2.8% y/y or contracted 3.7% m/m. Non-OG imports also contracted by 1.9% y/y in Oct, lower than prior month’s contraction at 14.5% y/y due to higher imports in consumer, capital and raw material components.
All in all, higher total consumer and raw material component imports indicate that household consumption and industrial activity started to improve. Coupled with the moderation in capital goods imports as investment accelerated in 3Q23 and the commissioning of several new smelters in 1Q24 are expected to thicken the trade surplus further.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.