Global Headwinds Impact Trade Balance in July 2019 - Bank Sentral Republik Indonesia
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February 25, 2020


​​Indonesia's trade balance in July 2019 experienced in USD0.06 billion deficit, reversing the USD0.30 billion surplus recorded the month earlier. The deficit primarily stemmed from a narrower non-oil and gas trade surplus despite an improvement in the oil and gas trade deficit. The non-oil and gas trade surplus shrank on sluggish non-oil and gas exports as non-oil and gas imports accelerated. Meanwhile, the oil and gas trade deficit improved due to an uptick of oil and gas exports.

The non-oil and gas trade balance recorded a USD0.08 billion surplus in July 2019, down from USD1.26 billion the month earlier. Such developments were explained by restrained non-oi​l and gas export growth, weighed down by global economic headwinds and stagnant commodity prices. Non-oil and gas exports increased by USD2.80 billion (mtm) in the reporting period to reach USD13.85 billion, driven by motor vehicles and parts, electrical machinery and equipment, as well as mineral fuel. Meanwhile, non-oil and gas imports climbed from USD9.78 billion to USD13.77 billion in the reporting period on persistently solid domestic demand. Growth of non-oil and gas imports was dominated by machinery and mechanical appliances, electrical machinery and equipment, as well as iron and steel.

The oil and gas trade deficit stood at USD0.14 billion in July 2019, improving from USD0.97 billion the month earlier. The gains come amidst a USD0.75 billion bump in oil and gas exports to total USD1.61 billion in the reporting period, affecting all components, namely refined products, crude oil and gas. Meanwhile, oil and gas imports were recorded at USD1.75 billion in July 2019, relatively unchanged from the USD1.71 billion posted in the previous period. The moderate increase was caused, however, by crude oil, contrasting the declines experienced by refined products and gas.

Bank Indonesia considers the latest trade balance developments in July 2019 the result of global economic moderation and stagnant commodity prices against a backdrop of solid domestic demand. Moving forward, Bank Indonesia will constantly strengthen policy synergy with the Government and other relevant authorities in order to bolster external resilience, including the trade balance outlook. 

Jakarta, 15th August 2019

Onny Widjanarko
Executive Director ​



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