Trade Balance Indonesia Improves in July 2015 but Concerns Persist
Indonesia’s trade balance surplus widened to USD $1.33 billion in July 2015, improving markedly from the USD $528 million trade surplus in the preceding month and being much higher than expectations of analysts. Based on the latest data from Statistics Indonesia (BPS), Indonesia’s July exports fell 19.2 percent (y/y) to USD $11.4 billion, while imports plunged 28.4 percent (y/y) to USD $10.1 billion. The trade surplus is positive as it supports a narrowing current account deficit (which stood at 2.1 percent of GDP in Q2-2015).
However, it remains worrisome that Indonesia trade surplus is primarily caused by plunging imports. Amid the country’s economic slowdown, reduced purchasing power, and the heavily depreciated rupiah, imports have dropped dramatically. Meanwhile, Indonesian exports have also fallen markedly but at a slower pace than imports. Falling imports and exports signal that global economic activity as well as domestic economic activity are weaker than a year ago hence raising concern about global and domestic growth in the near future.
Trade Balance Indonesia (in USD million):
Indonesia’s oil & gas exports fell 1.26 percent (m/m) to USD $1.26 billion in July 2015, while non-oil & gas exports fell 17.2 percent (m/m) to USD $9.99 billion in July 2015. Indonesia’s total July 2015 export value was the lowest figure in over five years.
Likewise, Indonesia’s July 2015 import value (USD $10.1 billion) also touched a five-year low. On a month-to-month basis, non-oil & gas imports plunged 25.2 percent in July 2015. Imports of oil & gas fell 11.0 percent over the same period.
Indonesia’s trade surplus accumulated to USD $5.73 billion during the January-July 2015 period.
Discuss
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Note to Mr PRESIDENT
OK, Right, now let’s see!!!
Exports down, imports up +++ re weak Rupiah.
Low Rupiah will help with exports, but not much dollar income.
Right, let’s triple import tax on expensive things.
I know, lets triple the tax on medically safe habits such as smoking.
Hmm! Perhaps we need to re-look at alcohol sales to Joe Public.
Perhaps it was not wise to stop small shops selling these illicit medical unsafe products.
Well? What about making the Public Sector Workforce more productive!!!!
Hmm, I know.
Hmm, let’s say no drinks licence required for small shops and café’s etc for alcohol less than 6%.
Hmm, KTP’s let’s do them for 10 years instead of 5!!!
Hmm, Passports, lets do them the same for 10 years instead of 5!!!
Hmm, Motor tax documentation. Let’s abolish the requirement for new number plates with the year on every 5 years.
What about creating more jobs for the country???
Hmm, I know.
Let’s make every new car have a catalectic converter.
Let’s make every new car have seat belts in the rear as well as the front.
Let’s make every body use Petromix, rather than premium.
Let’s do driving licences till there 70 years old then a Dr’s Cert every year after. (Note to police, they do not need a picture as the picture is on their KTP)
Let’s introduce overtime for a speedy output of motor log books, paid for by the increased volume of new motor sales.
Let’s introduce overtime for a speedy output of Land Certificates, paid for by the increased volume of land sales sales.
Let’s give our police force some motivation!!!!
Say Rp 10,000 for every motor violation. Rp5,000 for the copper, and Rp 5,000 for the 3 star Boss (or even for the Government)
E.g.:
No lights 10k,
No helmet 10K
No tax (3 x tax rates)
Bald tyres 10k
More than 2 on a bike 10k for each over 10 years old.
Going through Traffic lights at red 100K
Speeding (over 40 Klm/Hr) 100 K for every 10 Klm /hr in excess.
No driving licence 100k
Expats triple, cos they have big money
Let’s bring corruption under control, by abolishing the KPK, and making it an internal affairs department, with the old Boss KPK boss (Abe) made Supreme Commander of the Police.
Let’s recruit some foreign Civil Service advisors to err! To advise us.
But Mr president, if we do all this, foreign companies may decide to invest in us, the country would prosper.
Oh Sugar, I didn’t realise that. Forget it.