Indonesia: Trade Surplus Widens As Exports Surge| MENAFN.COM

Wednesday, 10 August 2022 11:27 GMT

Indonesia: Trade Surplus Widens As Exports Surge


(MENAFN- ING) Trade balance hits $7.56bn surplus

Indonesia's April trade balance showed similar trends but there were a couple of surprises. Both exports and imports posted double digit gains for the month. Exports however rose faster than expected, up 47.7% (40% expectation) as surging global prices helped boost Indonesia's exports. Imports also posted strong growth although actual expansion was lower than forecast. Surging exports and lower-than-expected imports resulted in a trade surplus of $7.56 bn. The sizable trade surplus should help keep the current account in positive territory.

Trade surplus jumps to multi-year high


Badan Pusat Statistik
Palm oil export ban and the IDR

Sizable trade surpluses have been a key support for the IDR of late. Indonesia has maintained the trade balance in surplus since the start of the pandemic, with the recent global commodity price surge boosting this number further. The latest trade surplus is the highest since at least 2007 and may have lent some stability to IDR for the month of April. Going forward, the recent ban in palm oil exports may cap trade surpluses in the near term. Less sizable trade surpluses may mean less support for the IDR in the near term and we can expect some pressure on the IDR in the coming months.

MENAFN17052022000222011065ID1104226661


*Content Disclaimer:
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more here: https://think.ing.com/about/disclaimer/

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.