Economist at UOB Group Enrico Tanuwidjaja evaluates the latest trade balance figures in Indonesia.
“Indonesia posted another trade surplus of +USD2.0bn in January 2021, slightly narrower from December 2020’s +USD2.1bn. This marked a ninth-straight month of trade surplus since May 2020.”
“Exports slowed by +12.2% y/y in January to USD15.3bn (vs. December’s +14.6%) following lower exports of palm oil (HS-15) and iron-steel (HS-72) to India and China.”
“Meanwhile, Imports contracted to USD 13.3bn, at -6.5% y/y in January (vs. December’s -0.5%), driven by lower imports, notably capital goods (HS-84 and HS-85). January 2021’s trade surplus of +USD2.0bn was higher than the -USD0.6bn deficit recorded January last year. This may continue to improve Indonesia’s current account which will be positive to support the external stability.”