REPUBLIKA.CO.ID, JAKARTA -- Indonesia's trade balance recorded a US$1.7 billion surplus in June 2018. It overcame the previous $1.5 billion deficit posted the month earlier.
The gains come amidst a maintained non-oil and gas trade surplus combined with a narrower oil and gas trade deficit, Bank Indonesia (BI) executive director for communications Agusman said in a statement here on Monday. Consequently, Indonesia's trade balance recorded a $1.0 billion deficit cumulatively for the period from January-June 2018.
The non-oil and gas trade surplus was recorded at $2.1 billion in June 2018 as imports declined $5.7 billion (mtm) on the back of machinery and mechanical appliances, electrical machinery and equipment, iron and steel, plastics and plastic products, as well as organic chemicals.
On the other hand, exports slumped by a total of $3.3 billion (mtm) in the same period on fewer shipments of vehicles and components, electrical machinery and equipment, machinery and mechanical appliances, wood and wooden products, as well as rubber and rubber products.
The oil and gas trade deficit narrowed as exports increased and imports decreased.
Therefore, the oil and gas deficit stood at $0.4 billion in June 2018, down from $1.2 billion the month earlier.
Such developments were explained by a $0.1 billion (mtm) surge in oil and gas exports accompanied by a corresponding $0.7 billion (mtm) decline in oil and gas imports.
BI remains assured that the positive trade balance recorded in June 2018 will support current account performance.
It will continue to monitor global and domestic economic developments that could undermine the trade balance, while striving to maintain solid and sustainable domestic economic growth moving forward.