Indonesia Posts 670m Trade Deficit January highest since april 2014
In this article (5)
Indonesia posted a $670 million trade deficit in January as increased exports were offset by higher imports of raw materials by manufacturers, the Central Statistics Agency, or BPS, reported on Thursday (15/02).
The deficit is the highest since April 2014, having increased from December’s $220 million deficit, which was revised down from $270 million. Indonesia only posted trade deficits in July and December last year.
Exports increased 7.86 percent year on year in January to $14.46 billion, compared with 6.93 percent year on year in December, thanks to mining and manufactured goods. This figure however, is down 2.81 percent from December.
According to BPS head Suhariyanto, prices of some commodities, such as copra and palm kernel oil, have declined, undermining export gains from rising coal and nickel prices.
Imports jumped 26.44 percent year on year in January to $15.13 billion, compared with 17.83 percent year on year in December, due to purchases of electrical and mechanical machinery. This figure is 0.26 percent higher than in December.
The imports of raw materials increased 2.34 percent in January, compared with a month earlier, while imports of consumer and capital goods declined by 1.46 percent and 7.39 percent, respectively.
However, the imports of consumer goods, capital goods and raw materials showed double-digit growth on an annual basis, at 32.98 percent, 30.9 percent and 24.76 percent, respectively.
Indonesia had its biggest trade deficits with China ($1.83 billion), Thailand ($211.4 million) and Australia ($178.2 million).
Questions & Answers
Q.What specifically caused the January trade deficit to be so high?
What specifically caused the January trade deficit to be so high?
The deficit was primarily caused by significantly higher imports, which jumped 26.44 percent year on year. While exports increased, they were offset by these increased imports of raw materials and electrical and mechanical machinery.
Q.Which types of goods saw the largest increases in imports during January?
Which types of goods saw the largest increases in imports during January?
Imports of electrical and mechanical machinery jumped significantly. On an annual basis, consumer goods saw the largest growth at 32.98 percent, followed by capital goods at 30.9 percent and raw materials at 24.76 percent.
Q.How did export performance in January compare to the previous month?
How did export performance in January compare to the previous month?
While exports increased 7.86 percent year on year, this figure was actually down 2.81 percent from December. Declining prices for some commodities, such as copra and palm kernel oil, undermined overall gains.
Q.Which countries did Indonesia have its largest trade deficits with in January?
Which countries did Indonesia have its largest trade deficits with in January?
Indonesia's largest trade deficits in January were with China, amounting to $1.83 billion. Significant deficits were also recorded with Thailand at $211.4 million and Australia at $178.2 million.
Reader pulse
What does Indonesia's January trade deficit signal for retail?
21,898 votes so far