Indonesia: Trade deficit narrows in December
January 15, 2016
Exports contracted 17.7% in December over the same month last year, which was broadly in line with the 18.0% drop seen in November. December’s result marked the eighth consecutive double-digit loss. Non-oil and gas exports, which account for the majority of Indonesian shipments, dropped 13.7% in December (November: -16.5% year-on-year). Oil and gas exports contracted a staggering 44.8% (November: -28.9% yoy). Meanwhile, imports fell 16.0% in December, which was up slightly from the 18.0% contraction seen in November.
The trade deficit narrowed from USD 118 million in November to USD 236 in December. This result contrasted the roughly balanced trade account recorded in the same month of 2014 and the USD 110 million surplus the market had expected. Meanwhile, the 12-month moving sum of the trade balance narrowed from a USD 7.8 billion surplus in November to a USD 7.5 billion surplus in December.
Author: Carl Kelly, Economist