Main Menu

Indonesia’s Trade Minister Reports On Trade Balance Surplus

World Trade – Indonesia

Open Eyes Opinion {source: IDgov}

 

Indonesia  Trade Balance a Surplus
The Indonesia Trade Minister: The Agricultural Sector Becomes Prima donna

Jakarta, 17 February 2015 – The Indonesian Minister of Trade, Rachmat Gobel, admitted to being
optimistic with the achievement of the surplus from the trade performance of January 2015.

The export total in January 2015 reached USD 13.3 billion (down 8.1% YoY), while imports reached USD12.6 billion (down 15.6% YoY). Therefore, a USD 709.4 million surplus was achieved, which is betterhan the USD 443.9 million deficit of January of last year. The trade surplus in January 2015 was driven by the USD 748.0 million non-oil and gas surplus.

Meanwhile, the oil and gas deficit declined drastically to only USD 36.6 million compared to previous
months. “The trade balance in January 2015 was better compared to the same month of last year which
was a deficit,” said Rachmat at a press conference today (Tuesday 17/2), at the Ministry of Trade
Office, Jakarta.

Agricultural products contributed to the encouraging surplus. Agricultural sector exports experienced
an 8.9% increase to USD 0.4 billion last month. The agricultural sector which increased significantly
compared to January 2014 included CPO (up 7.1%); coffee, tea, and spices (up 56,0%); and cocoa (up
17.6%), “The agricultural sector is one of the export prima donnas in the midst of the sluggish state of
other export sectors,” explained Rachmat.

The export total in January 2015 comprised USD 11.2 billion in non-oil and gas exports, down 6.2% YoY,
and USD 2.1 billion in oil and gas exports, down 17.0% YoY. The decline in exports was caused by the
drop in demand from Indonesia’s export destination country, which is indicated by the decrease in
imports from those countries, which include China (-21.5%), India (-11.3%), and Brazil (126.0%).
Meanwhile, imports comprise USD 10.5 billion in non-oil and gas imports, down 7.8% YoY, and USD 2.1
billion in oil and gas imports, down 40.4% YoY, mainly caused by the sharp decline in global oil prices by
50.2% (YoY).

The non-oil and gas trade with the United States (US), India, the Netherlands, the Philippines, and
Switzerland contributed most to the surplus of January 2015, contributing up to USD 1.9 billion.

Meanwhile, China, Thailand, Brazil, Australia and South Korea contributed most to the non-oil and gas
deficit, contributing up to USD 2.4 billion.

Oil and gas exports in January 2015 dropped by 17.0% (YoY) to USD 2.1 billion. A decline in exports
occurred with oil based commodities, which dropped 22.6%, and gas, which dropped by 25.8%. The
mining sector also dropped significantly by 16.3% to USD 1.7 billion.

The mining sector which dropped significantly included metal ores, slag, and ash (down 33.1%); iron and steel (down 24.8%); and
aluminum (down 26.5%).

Besides that, industrial sector exports also weakened. In January 2015, exports dropped by 4.7% to USD 9.1 billion.

The industrial sector which dropped significantly included organic chemicals (down 41.1%), fertilizers (80.2%), and machinery and mechanical appliances (down 28.9%).

Imports of Consumer Goods Down 20.3%
Meanwhile, imports of consumer goods experienced a significant decline reaching 20.3% as
repercussion of various domestic news. “The import share of consumer goods was recorded at 6.2%
with its value dropping 20.3% (YoY), the highest decline among other imported goods structure. As for
consumer goods whose imports dropped significantly, they include meat, motor vehicles, fruits, leather
goods, and ready-to-wear clothing,” explained Rachmat.

In January 2015, the total value of imports reached USD 12.6 billion. This amount is a 15.6% decline
compared to the same period of the previous year, which was recorded at USD 14.9 billion or down
12.8% compared to previous month. Structurally, imports in January 2015 were still dominated by
raw/auxiliary materials (76.3%) though the value experienced a decline by 4.1% (YoY).

The raw/auxiliary materials whose imports dropped significantly included optical devices, down 16%;
organic chemicals, down 15.3%; and cotton, down 11.0%. Meanwhile, the import share of capital
goods experienced a decline to 17.5% (YoY). The capital goods whole imports dropped significantly
included electrical machinery/equipment, down 20.1%; vehicles and their parts, down 10.8%; and
machinery, down 9.2%.

Based on the origin country of imports, most imports from Indonesia’s trade partner countries
experienced a decline including imports from Japan, the US, and Malaysia. Goods from Japan, whose
imports dropped, included vehicles and their parts, iron and steel, and motor vehicles. Goods from
Malaysia, whose imports declined, included iron and steel, processed food, and chemical products.
Goods from the US, whose imports dropped, included machinery, chemical products, and optical
devices.
###
For further information please contact:
Ani Mulyati
Head of Public Relations Center
Ministry of Trade
Tel/Fax: 021-3860371/021-3508711
Email: pusathumas@kemendag.go.id

Kasan Muhri
Head of Center for Foreign Trade Policy
Trade Policy Analysis and Development Agency
Ministry of Trade
Tel/Fax: 021-23528683/021-23528693

Click here for reuse options!
Copyright 2015 openeyesopinion.com





Comments are Closed