Indonesia Posts $1.52b Trade Deficit in May on Higher Oil Prices
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Indonesia’s trade deficit narrowed to $1.52 billion in May, but was worse than expected, due to higher oil prices, the country’s statistics agency said on Monday.
That compared to a revised $1.63 billion deficit posted in April, which was the largest in four years. A poll by Reuters was for a deficit of $380 million in May.
Imports grew by 28.12 percent from a year earlier, after jumping by 35 percent in the previous month. Analysts had expected imports to grow 13.88 percent.
“This increase [in imports] was due to higher oil prices,” Suhariyanto, the statistics agency’s chief said.
Global oil prices rose in recent months due to supply concerns for some major producers.
Total imports in May were valued at $17.64 billion.
Exports from Southeast Asia’s largest economy grew by 12.47 percent annually in May, a higher-than-expected rate, with shipments of metals boosting the total exports to $16.12 billion.
Questions & Answers
Q.How did Indonesia's trade deficit in May compare to analyst expectations?
How did Indonesia's trade deficit in May compare to analyst expectations?
The deficit of $1.52 billion in May was significantly worse than expected. Analysts had predicted a deficit of $380 million for the month, a difference of over $1 billion.
Q.What was the primary reason for the increase in Indonesia's imports during May?
What was the primary reason for the increase in Indonesia's imports during May?
The increase in imports was primarily attributed to higher global oil prices. Supply concerns for major producers led to the rise in oil costs, affecting Indonesia's import figures.
Q.What contributed to Indonesia's higher-than-expected export growth in May?
What contributed to Indonesia's higher-than-expected export growth in May?
Exports grew by 12.47 percent annually in May, surpassing expectations. This higher rate was boosted specifically by an increase in shipments of metals from Indonesia.
Q.How did the May trade deficit compare to the previous month's figure?
How did the May trade deficit compare to the previous month's figure?
The trade deficit narrowed to $1.52 billion in May. This was an improvement compared to the revised $1.63 billion deficit recorded in April, which had been the largest in four years.
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