REPUBLIKA.CO.ID, JAKARTA -- Trade balance performance is estimated to improve in line with the continued global economic recovery and high price of global commodities. Bank Indonesia considers the trade balance deficit closely relates to the increasing activities in production and investment, in line with the improving domestic economic prospect and influence of increasing price of imported goods.
"Such development will support the improvement of economic growth prospect and current transaction performance," the director of BI's communications department, Arbonas Hutabarat, said in a statement here on Tuesday.
Indonesia's trade balance in May 2018 records a deficit of 1.52 billion US dollar, decreasing compared to the trade balance deficit in the previous month of 1.63 billion US dollar.
Such improvement is attributable to the decreasing deficit in non-oil and gas trade balance exceeding the increasing deficit in oil and gas trade balance. With such development, cumulatively from January until May 2018, Indonesia's trade balance records a deficit of 2.83 billion US dollar.
Non-oil and gas trade balance in May 2018 records a decreasing deficit to 0.28 billion US dollar, decreasing from the previous month of 0.52 billion US dollar. The improvement of non-oil and gas trade balance is primarily attributable to the increasing oil and gas export.
Non-oil and gas export in May 2018 increases by 1.23 billion US dollar (mtm), primarily boosted by the increasing export of machinery and electrical device, ore, crust, metal ash, iron and steel, knitted goods, and lead.
Meanwhile, non-oil and gas import increases by 0.99 billion US dollar (mtm), primarily due to the increasing import of machine and mechanical device, machinery and electrical device, cereals, sugar and candies, as well as vessels and floating structures.
The increasing non-oil and gas import is attributable to strong production and investment activities. Cumulatively from January until May 2018, non-oil and gas trade balance still records surplus of 2.20 billion US dollar.
Deficit in oil and gas trade balance increases in line with the increasing import, which exceeds the export increase. Oil and gas trade balance in May 2018 records a deficit of 1.24 billion US dollar, increasing from 1.11 billion US dollar in April 2018.
Such development is affected by the increasing import of 0.49 billion US dollar (mtm) in May 2018, boosted by the import of crude oil, oil products, and gas, higher than the increasing oil and gas export of 0.35 billion US dollar (mtm).