Bank Indonesia : Indonesia’s Trade Surplus Increases

No. 19/5/DKom

Indonesia's trade balance recorded a surplus in December 2016 totalling USD0.99 billion, up from USD0.83 billion the month earlier. A non-oil and gas trade surplus combined with a narrower oil and gas trade deficit were the main contributors to the increase.

The non-oil and gas trade surplus stood at USD1.45 billion in December 2016, down slightly from USD1.46 billion the month earlier. The decline stemmed from growth of non-oil and gas imports (1.35%, mtm) that outpaced non-oil and gas exports (1.13%, mtm). Imports surged on the back of cereals, ships and floating structures, jewellery/gems, animal meat, as well as arms/ammunition. Meanwhile, shipments of mineral fuels, rubber and rubber articles, not-knitted clothing, metal ore, crust and ash, as well as iron and steel boosted non-oil and gas exports.

The oil and gas trade deficit narrowed to USD0.45 billion in the reporting period from USD0.62 billion in November 2016 as oil and gas exports grew 11.66% (mtm) coupled with a 2.13% (mtm) decline of corresponding imports. Oil and gas exports were driven by oil products (30.69%, mtm) as well as oil and gas mining (11.08%, mtm). On the other hand, fewer imports of gas (34.91%, mtm) and oil products (2.13%, mtm) were recorded.

Consequently, the trade balance in 2016 registered a USD8.78 billion surplus, increasing from USD7.67 billion the year earlier. The gains in 2016 were attributed to a larger non-oil and gas trade surplus and narrower oil and gas trade deficit.

Bank Indonesia is satisfied that positive trade performance in December and throughout 2016 bolstered current account performance. Furthermore, Bank Indonesia will remain vigilant of global and domestic economic developments that could influence trade balance performance, while nurturing domestic economic activity.

Jakarta, 16th January 2017
Communication Department

Tirta Segara
Executive Director